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 ?
For those clients who have securities accounts, the rides regarding joint accounts with rights of survivorship still apply; that is, the securities pass directly to the surviving accountholder without probate.
On the other hand, if the property is held "joint with rights of survivorship," when one joint owner dies the other joint owner (or owners) takes the decedent's interest by operation of law.
Marriage is a social arrangement, recognized and sanctioned by the government, which bears on matters including rights of survivorship, tax law and other issues.
Jointly Owned Property With Rights of Survivorship Section 709.
Joint tenancy (and tenancy by the entirety) typically involves rights of survivorship, while tenancy in common does not.
COBRA benefits are not available to former employee partners -- Joint Ownership with Rights of Survivorship may fail when there are out of date legal documents -- Common law relationships do not offer protections
1981) (The court held the surviving spouse's elective share did not extend to joint savings accounts with rights of survivorship decedent had established in the names of himself and his daughter because such property was not subject to administration.
For example, many stock brokerage accounts are titled as joint tenants with rights of survivorship (JTWROS).
The ruling went on to say that if the decedent's stock was transferred by act of law under a joint tenancy with rights of survivorship or as tenants of the entirety, the surviving spouse's signature would be sufficient to cover both parties (surviving and deceased spouses).
Generally, there are no gift tax consequences upon the creation of a joint tenancy between spouses (either as a tenancy by the entireties (TBE) or as a joint tenancy with rights of survivorship (JTWROS)) because of the unlimited marital deduction.
Also, consider placing some of your assets in a variable annuity, life insurance or other investment with rights of survivorship, so that your estate can pass automatically to your heirs at your death.
However, recent cases from the Second and Third district courts of appeal have held that the ownership interests of joint account owners in funds held as joint tenants with rights of survivorship (JTWROS) survive their withdrawal, under certain circumstances, by one of the other account owners.