TIC vs. Joint Tenancy in Illinois Multi-Generational Homes

 Posted on December 12, 2025 in Estate Planning

Increasingly, multiple generations of Illinois families are living under one roof. Parents, adult children, and even grandparents are combining households for financial, cultural, or caregiving reasons, but in some cases, this can have devastating consequences. Parents may add adult children or grandchildren to the deed, but how that is done is crucial. In fact, how the deed is titled may well become one of the most important estate planning decisions you will ever make if multiple generations live in your home.

Whether your home is held as tenants in common (TIC) or as joint tenants with right of survivorship can have far-reaching effects, including probate exposure, Medicaid risks, creditor claims, inheritance outcomes, and family conflict. The distinction between TIC and joint tenancy may seem purely technical, but it can profoundly affect family stability and ownership rights. Understanding the differences now can help prevent financial and legal headaches in the future. A knowledgeable Lake Forest, IL estate planning attorney will help ensure your home goes to those you choose.   

Why is Multi-Generational Living on the Rise in Illinois?

One of the primary reasons that multi-generational living is on the rise in Illinois is due to the high cost of housing, particularly in Cook, DuPage, and Lake Counties. Elder care costs are also prohibitively high for most families, increasing much faster than income. Economic pressures among adult children, who may face student loan debt and astronomical childcare costs, are a contributing factor, although in some cases, families want to live together for cultural reasons.  

What is Tenancy-in-Common Under Illinois Law?

Tenancy-in-common means that each owner holds a separate, divisible share. These shares do not automatically transfer to the other owners at death, and each share must pass through probate unless held in a trust. Unequal ownership interests are permitted under tenancy-in-common, and the right to sell or encumber one’s share independently is allowed. Common problems with a tenancy-in-common include heirs inheriting fractional shares and the risk of a partition action if co-owners cannot agree on a sale or maintenance. It can be difficult to refinance a home with multiple fractional owners.

What Is Joint Tenancy with Right of Survivorship?

Under joint tenancy with right of survivorship (765 ILCS 1005/), all owners hold an equal, undivided interest in the entire property. At death, interest passes automatically to surviving owners, with no probate involved. Illinois requires that all owners acquire an interest at the same time. Joint tenancy with right of survivorship is often used to simplify transfer at first and second death.

Risks and complications associated with joint tenancy with right of survivorship provide little control over who inherits after the final surviving joint tenant. If a child is on the deed, he or she may unintentionally inherit 100 percent, and joint ownership can be treated as a "gift" from elderly parents that can skew the Medicaid lookback period for long-term care. Creditors of any one joint tenant can attach the entire property interest, which is a decided risk.  

Which Choice is Better for Illinois Multi-Generational Families?

A TIC may be the better choice for families who want to preserve inheritance for specific heirs, or for adult children with creditor or divorce concerns. It can also be the right choice when owners are contributing different amounts toward the purchase or upkeep of the home. Joint tenancy could be the better option when all parties trust one another implicitly, and the family wants to avoid probate upon the first death.

It is also a good choice when there are no creditor risks for younger owners, and the owners want a simple, automatic survivorship transfer. A revocable living trust or a joint family trust could be the best option when parents need Medicaid planning flexibility, adult children’s marriages or finances are unstable, or a caregiving child is being compensated through homeownership.

Contact a Gurnee, IL Estate Planning Lawyer

Choosing between TIC and joint tenancy is much more than a paperwork decision, especially for Illinois multi-generational households. An experienced Lake Forest, IL wills and trusts attorney from Newland & Newland, LLP can help you ensure the wrong structure does not expose the home to creditors, Medicaid penalties, or family conflict. Our attorneys are local to the area and put our clients and communities first. Call 847-549-0000 to schedule your free consultation.