Severance of Joint Tenancy

A document severing joint tenancy is subject to Deed Tax.

In most cases, deeds severing joint tenancy are made without consideration and only the minimum tax of $1.65 would be due ($1.70 in Hennepin and Ramsey counties).

As joint tenants, each cotenant has the right of survivorship in the other’s half-interest. When the joint tenancy is severed, each cotenant gives up their survivorship right to the other cotenant to succeed to the other cotenant’s half interest. In return, each cotenant receives the right to have their own half interest pass to their estate.

If the consideration for a deed conveying joint tenancy is greater than $3,000, the Deed Tax would be calculated as follows:

Deed Tax = Consideration  x   0.0033 (use 0.0034 for Hennepin and Ramsey counties)