I’ve enjoyed reading this book by Neil Harl on farm and estate planning. Harl does a nice job illustrating the difference in holding property at death in Tenancy in Common vs. Joint Tenancy (with rights of survivorship).
Harl explains (page 22), “[a]t death of a tenant in common, that individual’s undivided interest passes to that individual’s heirs under state law or under the person’s will.” However, in sharp contrast, joint tenancy is characterized by a right of survivorship. So, in this instance, “[w]hen one joint tenant dies, the survivor immediately becomes the full owner.”
To illustrate these concepts, let’s look at the following examples:
Mother, Father, Uncle, Daughter, and Son own a farm as Tenancy in Common. If Uncle dies, then his share will go to his heirs (likely his spouse and/or children) instead of the Mother, Father, Daughter and Son.
Mother, Father and Uncle own a farm as Joint Tenants with Rights of Survivorship. When Uncle dies in this scenario, his share will go to the Mother and Father, with rights of survivorship.
Although this issue is typically discussed with land, it is also an important issue to keep in mind with livestock. For example, if a Father, Son & Daughter own cattle in joint tenancy, when the Father dies then the Son & Daughter will own the livestock by operation of law. If they owned the cattle as tenancy in common, then the Father’s share might go to the Mother or another person depending on the language in his Last Will and Testament and/or the Rules of Intestacy in his state. Harl discusses an interesting legal question relating to the progeny of livestock owned as joint tenants (page 23)– states are likely split on this issue so it is best to consult with an attorney licensed in your jurisdiction.