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Joint Tenancy With Right Of Survivorship

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In joint tenancy with right of survivorship, each party owns an 'undivided interest' in the account. If one party of a joint tenancy with right of survivorship should perish, the other becomes the sole owner. This joint tenancy with right of survivorship transfer avoids probate but estate taxes may apply depending on the total amount transferred. A common option of a joint tenancy with right of survivorship is through a husband and wife relationship. Another popularly used name for a joint tenancy with right of survivorship is "Tenants by Entirety". There are typically two options available to those who enter into an ownership of value jointly; joint tenancy with right of survivorship and tenancy in common. The latter option, as opposed to joint tenancy with right of survivorship, allows each party to specify their particular interest in the account and include it in their estate value. Business relationship partners tend not to use joint tenancy with right of survivorship.



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