Unlike joint ownership with rights of survivorship
, both tenants in a tenancy by the entirety must agree to a transfer of the property interest.
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.
Whether spouses own property titled "joint with rights of survivorship
" or as "tenants by the entirety," the rules pertaining to the survivor's basis are the same; thus, in this article, spousal joint with rights of survivorship
will be treated as synonymous with tenancies by the entirety.
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
Joint tenancy with rights of survivorship
(JTROS) is a popular format in which to hold real property.
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. This may not be true if the donee spouse is not a United States citizen because the gift tax marital deduction is not available for gifts made to a noncitizen spouse. While the gift tax marital deduction is disallowed when a gift is made to a noncitizen spouse, the annual exclusion is increased from $10,000 to $100,000 for such gifts.
a) Totten trust accounts and joint bank accounts with rights of survivorship
, and joint tenancies with rights of survivorship
are testamentary substitutes whether created before or after the decedent's marriage.
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.