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.
It's important to remember that spouses who own their assets jointly with rights of survivorship
may not be able to take advantage of this.
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.