Joint Tenancy

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What is Joint Tenancy

A Joint tenancy is a form of property ownership where two or more individuals hold equal shares of an asset, most commonly a home. Its important feature is the right of survivorship, meaning that when one owner passes away, their share automatically transfers to the surviving joint tenant(s), without the need for probate and regardless of what is stated in a Will.
Application

Key Legal Features  

1. Unity of Possession
– All joint tenants have equal rights to possess and use the whole property.
– One joint tenant cannot sue another for trespass.
2. Unity of Interest
– All owners must have equal interest of the same type, duration, and quality.
– Legal actions must include all co-owners. 
3. Unity of Title 
– All tenants must obtain ownership from the same legal source (eg; same contract or deed).
4. Unity of Time 
– Ownership must begin at the same moment for all co-owners.
Disadvantages of Joint Tenancy 
1. Practical & Legal Limitations
– Joint Accounts: One owner can legally withdraw the entire balance 
– All decisions require consensus: Any contract or property action must be agreed upon by all. 
– Legal action: Must sue or be sued jointly, potential "hostage" situation 
3. Intent Vs Outcome
– Property income and profits are split equally, not based on contribution. 
– Example: Friends who invest uneven amounts in a property may end up with equal benefits. This doesn't reflect their true intentions. 
2. Estate, Tax & Confidentiality Issues
– No Tax Advantage: Each party is taxed on their portion, which can cause complications for high-tax resident or US persons.

– No Confidentiality: Joint tenancy offers no privacy in legal or financial proceedings ( eg; divorce discovery). 

– Estate of last surviving tenant: Property is included in the final survivor's estate and may be subject to probate, estate duty, or forced heirship.

Frequently Asked Questions

1.CPF Account Savings 
Your nomination includes all savings in your Ordinary, Special, MediSave, and Retirement Accounts. These funds do not form part of your estate, so they can't be included in your will and are protected from creditors. 

2. Unused CPF LIFE Premiums 
If you're on CPF LIFE, any unused premium at the time of your death will be paid out according to your nomination.

3. Discounted Singtel Shares
If you own Special Discounted Singtel Shares under the 1993 or 1996 schemes, they will be included in your CPF nomination.

What CPF Nomination Does Not Cover 
1. Property Purchased with CPF 
Properties bought using CPF savings are not covered by CPF nominations:

  • Sole Ownership: Goes to your estate 
  • Joint tenancy: Passes automatically to your surviving owner.
  • Tenancy-In-Common: Your share goes to your estate.

    2. Dependant's Protection Scheme (DPS)
    DPS payouts are not included in your CPF nomination. You'll need to submit a separate DPS nomination to decide who receives the payout.

    3. CPF Investment Scheme (CPFIS)
    Investments under CPFIS and any investment account balance from part of your estate and are handled separately, unless you've made a nomination with the insurnace provider for insurance-linked investments 

    You can nominate any individual or organisation to receive your CPF savings, with no limit to the number of nominees you may appoint.

    To ensure that your CPF savings are distributed according to your wishes when you pass on, it is important to review your CPF nomination regularly, especially at key life milestones:

    1. Marriage 
    2. Divorce 
    3. Childbirth
    4. Death of nominee(s) 

    You must be at least 21 years old and must have the mental capacity to make the LPA. For the LPA to be valid, it must be registered with the Office of the Public Guardian (OPG).