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.
They own a hunting cabin together with the deed containing the words "joint with rights of survivorship.
Joint tenancy with rights of survivorship
(JTROS) is a popular format in which to hold real property.
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.
This judgment was based on the trial court's instruction to the jury, which in turn was based on the Medley decision, that if the couple had created joint accounts with rights of survivorship, then the transferred funds could be recovered from the third parties.
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.
obligations held jointly with rights of survivorship or as tenants by the entirety are testamentary substitutes.
For example, the testator may wish that family heirlooms, interests in a pension plan, life insurance proceeds, or jointly held property with rights of survivorship
pass free of any death tax burden.