What is joint tenancy with rights of survivorship?
A. Any two (or more) people can own property as joint tenants with rights of survivorship. Upon the death of an owner, his/her share automatically goes to the surviving owner(s). The phrase “as joint tenants with full rights of survivorship” or similar wording (governed by state statute) must appear in the deed. A joint tenant cannot use a last will and testament to leave his or her share of joint tenancy property to someone else. If all joint tenants die simultaneously, i.e., no owner survives any of the others, each joint tenant’s interest in the property passes by their will. Owners may decide to change ownership of property from joint tenancy to tenancy in common in order to leave their interest to someone other than the surviving joint tenants. In most states, transfers from joint tenancy into another form of co-ownership can be done even if other joint tenants object. Note: Do not use a quit claim deed to modify an existing joint tenancy. Use a warranty or grant deed. Technically
Joint Tenancy ownership is where two or more people hold title to an asset. Joint tenancy with rights of survivorship (JT/WROS) features a right of survivorship. The term “right of survivorship” means that upon the death of one joint owner, title passes by “operation of law” to the surviving owner who receives sole ownership of the asset. It is a type of ownership that will not be controlled by either your will or your trust.
This is the most common form of asset ownership between spouses. Joint tenancy has the advantage of avoiding probate at the death of the first spouse. However, the surviving spouse should not add the names of other relatives to their assets. Doing so may subject their assets to loss through the debts, bankruptcies, divorces and/or lawsuits of any additional joint tenants. Joint tenancy planning also may result in unnecessary death taxes on the estate of a married couple. You will often see the acronym “JTWROS,” Joint Tenants With Right of Survivorship” on the title of the account or asset.
This is the most common form of asset ownership between spouses. Joint tenancy has the advantage of delaying probate until the death of the second spouse. However, the surviving spouse should not add the names of other relatives to their assets. Doing so may subject his or her assets to loss through the debts, bankruptcies, divorces and/or lawsuits of any additional joint tenants and could result in additional capital gains tax or gift tax, as well as unintentional disinherited of some intended beneficiaries. Joint tenancy planning also may result in unnecessary death taxes on the estate of a married couple.
