citizens with all their assets titled as joint tenants with right of survivorship
, and their net worth is $10 million.
This article examines the effects of owning property as tenants by the entirety, tenants in common, joint tenants with right of survivorship
, and with life estates.
William Biggers and Linda Crook, brother and sister, inherited a piece of real property upon the death of their mother, taking the property as joint tenants with right of survivorship
If property is held with another person in joint ownership with right of survivorship
, the property will pass to the survivor by operation of law and not through the will; the jointly held asset never forms part of the first joint owner's estate.
Property owned as joint tenants with right of survivorship
is not treated the same and one tenant's interest in such property generally may be reached by his or her creditors, perhaps through partition of the debtor's interest.
One of the most troubling areas in estate planning is the treatment of property owned as joint tenancy with right of survivorship
(JTWROS) and tenancy by the entirety.
Property that is excluded includes that held in joint tenancy with right of survivorship
, or tenancy by the entirety, your spouse's one half of the community property, property held in a living trust and life insurance and retirement plan proceeds.
A 1987 constitutional amendment makes it possible for spouses to hold community property as joint tenants with right of survivorship
, without first having to partition community property into separate property and then convert the separate property into survivorship joint tenancy (the old Texas two-step).
Other types of property held jointly with right of survivorship
also bypass the will.
It was questionable at common law whether a joint tenancy with right of survivorship
or a tenancy by the entirety could be created by a conveyance from the owner to the owner and another.
Like so many things, community property with right of survivorship
is another tool in the tool box that estate planning attorneys have at their disposal.
The property was held jointly with right of survivorship