Joint Ownership and Inheritance: Why the Deed Matters
Someone may say, “My name is on the house, so it will go to me when the other owner dies.” That may be correct, but the fact that two names appear on a deed does not finish the analysis.
The form of ownership matters. A deed can establish rights that affect both ownership during life and the transfer after a death.
What is the difference between the common forms?
With a tenancy in common, each owner holds a share without an automatic right to take the other owner's share at death. That deceased owner's interest may pass under a will or intestacy law. A joint tenancy with a right of survivorship generally allows the surviving owner to receive the deceased joint tenant's interest.
These arrangements can produce different results even if the owners paid the same amount for the property. The will has to be considered alongside the ownership arrangement.
What does Iowa law say?
Iowa Code section 557.15 provides rules for interpreting conveyances to multiple owners. It generally starts with a tenancy in common but recognizes circumstances creating a presumption of joint tenancy with survivorship, including certain language and identification of the grantees as married to each other.
The section also addresses the effect of certain marital court orders. Its current provisions apply to instruments executed and orders entered on or after January 1, 2015. An older deed therefore deserves attention to the law applicable to that instrument.
What should someone actually review?
Start with the recorded deed and any later documents affecting ownership. An old closing folder may not show a later transfer or court order. A mortgage statement can identify a borrower, but it does not replace reviewing the deed to determine ownership.
For example, a parent who wants two children to inherit equally should check whether the house is already owned with someone else under survivorship terms. The intended gift in the will may not control that house at all.
The useful question is not simply whose names appear. It is what legal interest each person holds and how that interest passes when someone dies.
Tyler ThompsonAuthor