Taking title as joint tenants with “right of survivorship ” avoids headaches

For buyers who are not husband wife, but seeking to simplify estate planning or reduce concerns about how real estate will be handled in the event one of the owners becomes deceased, the words “joint tenants with right of survivorship” can alleviate or eliminate the mechanics of probate. The remaining owner can simply record a certified copy of the Death Certificate and assuming there are no other adverse title or probate matters, the property can then managed by the remaining owner(s).

Joint tenants with right of survivorship defined: Joint tenancy ownership is where two or more people hold title to an asset. Joint tenancy with rights of survivorship (JT/WROS) features a right of survivorship. The term “right of survivorship” means that upon the death of one joint owner, title passes by “operation of law” to the surviving owner who receives sole ownership of the asset. It is a type of ownership that will not be controlled by either your will or your trust.

Generally speaking, spouses on title do not need to have this specific language placed on the deed, as the remaining spouse by operation of law receives,  full interest during their lifetime to the property.But exceptions can and do exist.

This simple wording is often overlooked when the deed is being prepared. Many closing agents do not even ask the question when non-spouses are purchasing real estate. To clarify how title will be taken, simply ask for a copy of the DRAFT deed and request that the language “joint tenants with right of survivorship ” be adjacent to the names of the person(s) receiving title.

Please call 305-271-0100×701 or info@theclosingcompany.net  for more information.

Disclaimer: The Closing Company, Inc. is not a law firm and is not providing legal or tax advice in this publication.  For legal advice, please consult with a licensed Attorney. For tax advice, consult with a Certified Public Accountant.