Jointly owned residential or commercial property is residential or commercial property owned by more than someone. It is normally not included in the estate of a decedent. Examples of jointly owned personal residential or commercial property are if you and another person are both listed on the title of a cars and truck or if you have a joint bank account. If the other person passes away, you immediately have full ownership of that residential or commercial property.

Sometimes joint ownership is more complex. If you owned real residential or commercial property with a decedent, or if you own any residential or commercial property with a decedent and somebody else, ownership can be difficult to comprehend after a death.

In Michigan, you can collectively own residential or commercial property in four methods:

- Tenants in common

- Joint renters

- Joint tenants with full rights of survivorship

- Tenants by the totalities


All four forms of joint residential or commercial property leave the making it through owner with various rights. When handling complicated joint residential or commercial property circumstances, you might wish to talk with an attorney. Use the Guide to Legal Help to discover a legal representative or legal services in your location.

Survivorship and the 120-Hour Rule

Survivorship (outliving your co-owner) impacts more than simply the 4 kinds of jointly owned residential or commercial property. It can also impact inheritance rights of beneficiaries and devisees. In Michigan, an individual should live more than 120 hours after their co-owner craves the survivorship rights to take effect. Generally, anyone who dies during the first 120 hours after a decedent's death is considered to have predeceased (died before) the decedent. When that occurs, they lose their interest in the decedent's residential or commercial property. As an outcome, this person's beneficiaries and devisees will not receive a share in the decedent's residential or commercial property. The 120-hour guideline is not followed if:

- A will, deed, title, or trust addresses simultaneous deaths or deaths in a typical catastrophe;

- A will, deed, title, or trust mentions a person is not needed to make it through for a particular amount of time or it defines a different survival period;

- The guideline would impact interests secured by Michigan law; or

- The rule would cause a failure or duplication in distributing residential or commercial property.


Tenants in Common (Real Residential Or Commercial Property)

An occupancy in typical is produced when real residential or commercial property is communicated (moved) to two or more individuals who are not married to each other, and there is no referral to joint tenancy or right of survivorship. All of the occupants in common have an equal right to utilize or inhabit the entire residential or commercial property so long as the occupancy stays undamaged. Once a tenant dies or sells their share, the staying tenants are entitled just to their fractional share. Each occupant's share passes to their estate when they pass away; there is no survivorship right.

Bob, Mary, and Kelly own a cottage together as occupants in common. Mary dies. Her 1/3 share of the home goes to her estate, not to Bob and Kelly. Bob and Kelly each own 1/3 shares of the cottage.

Joint Tenants (Real and Personal Residential Or Commercial Property)

A joint occupancy is produced when residential or commercial property is collectively conveyed to 2 or more people. With real residential or commercial property, the conveyance (typically a deed) must particularly discuss joint tenancy. However, when 2 people are listed on monetary accounts (bank, credit, or savings), or when they are listed on a car title, they immediately own the residential or commercial property collectively. If the phrase "Full Rights To Survivor" appears on account documents or car title, the ownership right becomes a survivorship right when one of the joint occupants dies. This indicates the enduring joint tenant takes complete ownership. If that phrase doesn't appear, then the residential or commercial property will either be probated with the remainder of the deceased individual's estate, or it will be divided in between that person's next-of-kin (beneficiaries).

Mary and Kelly have a car that is jointly titled in their names with the phrase "Full Rights To Survivor" written on it. Kelly dies. Mary now automatically owns the automobile, even if Kelly's estate is going through the probate process.

Real residential or commercial property is more complicated. If the residential or commercial property is communicated only as a joint tenancy- with no mention of a right of survivorship- the survivorship right can be severed by the owners. A single tenant could offer their interest in the residential or commercial property. Or, all of the renters could consent to sever the joint occupancy, making it an occupancy in common. (See the above section on Tenants in Common).

Bob, Mary, and Kelly own a cottage together as joint renters. Kelly offers her 1/3 share of the residential or commercial property to John. This destroys her joint tenancy share and transforms it into a tenancy in common. Mary dies (with her joint tenancy with Bob undamaged). Her 1/3 share goes to Bob and not to her estate or John. If John passed away, his share would go to his estate.

Joint Tenants with Full Rights of Survivorship (Real Residential Or Commercial Property)

A joint tenancy with full rights of survivorship is developed when genuine residential or commercial property is communicated to two or more people, and the conveying document (normally a deed) particularly discusses survivorship. When a joint occupant dies, their share passes to the remaining renters. No owner can offer or transfer their interest in the residential or commercial property without the approval of the other joint renters.

Here is an example:

Bob, Mary, and Kelly own a home together as joint occupants with full rights of survivorship. Mary dies. Bob and Kelly now own the entire cottage. Mary's estate gets no share of the cottage.

Tenancy by the Entirety (Real and Personal Residential Or Commercial Property)

A tenancy by the whole is produced when residential or commercial property is conveyed to a couple at the very same time. It is not required for the conveyance (generally a deed) to discuss the creation of a tenancy by the whole, or to refer to the married couple as such. So long as the conveyance was to spouses who were wed to each other at that time, an occupancy by the entirety was developed.

This type of occupancy is often for genuine residential or commercial property. But there are some instances when a tenancy by the totality can include personal residential or commercial property, such as stock certificates.

The partners each have a survivorship right, and each is presumed to own the entire residential or commercial property. Neither can offer or transfer their interest in the residential or commercial property without the other's permission. Creditors of one spouse can not put a lien on the residential or commercial property. However, if both spouses are accountable for the exact same debt, the lender can reach the residential or commercial property.