Joint tenancy with right of survivorship is one of the most commonly used estate planning tools in Canada — and also one of the most frequently misunderstood. Used correctly (especially between spouses), it elegantly bypasses probate and transfers property automatically at death. Used incorrectly (especially when adding adult children to title), it can create serious tax, legal, and family problems.
Joint tenancy is a form of co-ownership where two or more people own an asset together, with each person holding an undivided interest in the whole property. The defining feature is the "right of survivorship" — when one joint tenant dies, their share automatically passes to the surviving joint tenant(s), outside the estate and without probate.
Joint tenancy is distinct from "tenancy in common," where each person owns a specific share that passes through their estate on death. Most Canadian couples hold their home as joint tenants specifically for the survivorship benefit.
When property is held in joint tenancy, the surviving joint tenant automatically becomes the sole owner on the other's death — no court process, no probate application, no delay. This is particularly valuable in provinces like Ontario and BC where probate fees are significant.
On a $900,000 Vancouver home, joint tenancy saves approximately $12,000 in BC probate fees. In Ontario, the saving on a similar value property would be approximately $12,750.
Joint tenancy transfer is nearly immediate. The surviving spouse typically provides a copy of the death certificate to the land title office and the property is re-registered in their name alone. This avoids the months of waiting that probate requires.
For most married and common-law couples, holding the family home as joint tenants is a sound, low-cost estate planning strategy. It is simple, effective, and well-understood by financial and legal institutions.
A common strategy promoted informally is adding an adult child to the title of your home or investment property in joint tenancy. The intent is to transfer the property at death without probate. In practice, this creates serious problems:
Either joint tenant can sever the joint tenancy unilaterally in most provinces by registering a notice of severance with the land title office. Once severed, the owners hold as tenants in common — each owns an undivided half-interest that passes through their respective estates. This can be used to convert an undesirable joint tenancy back to individual ownership.
Bank accounts and investment accounts can also be held jointly with right of survivorship. For spouses, this is often convenient — the surviving spouse can access funds immediately without waiting for probate. However, the same risks apply when adding adult children to financial accounts, including creditor exposure and potential tax on deemed dispositions of investments.
When a parent adds a child to the title of a property, Canadian courts presume that the child holds their interest in trust for the parent — not as an outright gift. The burden of proof is on the child to show that an actual gift was intended. Many "probate avoidance" transfers have been overturned by courts applying this principle, resulting in the property passing through the estate regardless.
For most Canadians concerned about probate on real estate, better options include:
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