Rights of survivorship

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Rights of Survivorship

In a situation where two or more persons jointly own property, the right of the other owner(s) to continue to own the property when one owner dies. In other words, a jointly-owned property with right of survivorship does not become part of a decedent's estate; rather, his/her co-owner(s) continue to own the property. Couples may have rights of survivorship on a jointly-owned house, for example. It may also be used in a joint business venture: if two persons own an apartment complex and one of them dies, the whole of the complex belongs to the co-owner and not the decedent's heirs. It is important to note, however, that the decedent's liabilities may remain attached to this property and may be used to pay off creditors, even if the creditor had nothing to do with the property in question. See also: Tenants in common.

Rights of survivorship.

If two or more people own property jointly with rights of survivorship and one of the owners should die, the deceased owner's share of the property automatically passes to the surviving owners.

This arrangement for joint ownership is in contrast to the arrangement known as tenants-in-common, in which a deceased owner's share becomes part of his or her estate and can be sold or distributed to heirs according to the terms of his or her will.

Couples who own their own home jointly often opt for right of survivorship to allow the surviving partner to enjoy full ownership rights to their home.

References in periodicals archive ?
Under rights of survivorship, the surviving co-owner automatically inherits full ownership of the property; whereas as tenants in common, each owner retains the right to name a different inheritor in his or her will.
Because the residential home was jointly owned with her husband with the rights of survivorship, Beatrice will automatically become sole owner of the property upon his death.
In general, property is owned outright, as tenants in common, as joint tenants with rights of survivorship, or as community property (in some states, such as California, including community property with right of survivorship).
Many stock brokerage accounts are registered as joint tenants with rights of survivorship.
In all cases, clients should be advised to establish a joint deposit account (A and/or B as account holders) with rights of survivorship.
Another way to distribute your estate is through jointly held property -- specifically, to call joint tenancy with rights of survivorship.
Experts often recommend that unmarried partners own a home or other property as joint tenants with rights of survivorship, though this can be a problem if they don't have a long-term commitment.
The three common forms of joint tenancies are: tenancy in common, joint with rights of survivorship and tenancies by the entirety.
The most important step is to not rely on a regular will--which still exposes them to probate--or a rights of survivorship deed, which simply delays probate until the surviving spouse dies.
If the client is buying the property with co-investors other than a spouse, it will be necessary to work out whether it's being held with rights of survivorship -- in which the remaining co-owners automatically inherit the decedent's share -- or as tenants in common, meaning the decedent names who inherits his or her share of the property.
Marriage is a social arrangement, recognized and sanctioned by the government, which bears on matters including rights of survivorship, tax law and other issues.