What is Joint Tenancy with Right of Survivorship?
A Joint Tenancy with Right of Survivorship is a document (usually in the form of a deed) wherein two individuals (often husband and wife) own equal and undivided interests in a piece of property. When one of the individuals dies, the surviving individual acquires ownership of the entire piece of property by right of survivorship. To establish ownership, the surviving individual simply executes and records an affidavit of death.
Pros of the Joint Tenancy with Right of Survivorship
The biggest pro to a Joint Tenancy is the fact that ownership of the property is transferred outside of probate. This makes this type of transfer simple and economical. In addition, the joint tenants are not required to record the deed to create the tenancy which can provide a measure of confidentiality from those who might object to the transfer. Also, when one tenant dies the decedent's creditors lose their rights against the property.
Cons of the Joint Tenancy with Right of Survivorship
A Joint Tenancy Deed is Irrevocable and the transfer is taxable as a gift at the time the deed is executed. Also, during the life of the tenancy, the creditors of both tenants can reach the tenants' share of the property.
Before executing a Joint Tenancy with Right of Survivorship, check out these articles: