No Right of Survivorship refers to a legal stipulation in property ownership where, upon the death of an owner, their share of the property does not automatically transfer to the surviving co-owners. Instead, the deceased owner’s share is distributed according to their will or, in the absence of a will, in accordance with state law.
Legal Definition and Context
When property is owned without the right of survivorship, typically under a form of ownership such as tenancy in common, the deceased owner’s interest in the property becomes part of their estate. It is then subject to administration through probate and distributed according to the directives of the decedent’s will or, if the owner dies intestate (without a will), by the rules of intestate succession defined by state laws.
Example: For instance, if three individuals own a property as tenants in common and one of them passes away, their share of the property does not transfer to the two surviving owners. Instead, it becomes part of the deceased’s estate and will be distributed according to their will or state law.
Types of Co-Ownership
Joint Tenancy with Right of Survivorship (JTWROS)
Joint Tenancy with Right of Survivorship means that upon the death of an owner, their interest automatically passes to the surviving co-owners. This form of ownership is often used by married couples or co-owners who wish to avoid probate.
Example: If two people own a house as joint tenants with right of survivorship and one dies, the survivor automatically becomes the sole owner of the property, bypassing probate entirely.
Tenancy in Common
In Tenancy in Common, each co-owner has an undivided interest in the property, which can be of equal or unequal shares. Importantly, no right of survivorship exists here, and each owner’s interest can be sold, willfully transferred, or inherited independently.
Historical Context
Applicability in Estate Planning
Comparisons and Related Terms
Right of Survivorship
Tenancy by the Entirety
Related FAQs
What is the primary legal distinction between ‘No Right of Survivorship’ and ‘Right of Survivorship’?
In property ownership with no right of survivorship, the deceased’s interest passes to heirs or beneficiaries through probate. In contrast, with a right of survivorship, the interest automatically transfers to surviving co-owners outside of probate.
Can ‘No Right of Survivorship’ be applied to all forms of property ownership?
No, ‘No Right of Survivorship’ applies mainly to tenancy in common and some forms of co-ownership. It does not apply to joint tenancy and tenancy by the entirety.
Are there any specific scenarios where opting for ‘No Right of Survivorship’ is beneficial?
Yes, opting for ‘No Right of Survivorship’ could be beneficial in cases where the owners wish their share to be inherited by their descendants or specified heirs rather than the surviving co-owners. It allows for more flexibility in estate planning.
References
Summary
‘No Right of Survivorship’ is a crucial concept in property law and estate planning, enabling property shares to be dispersed following an owner’s wishes rather than by default to surviving co-owners. This article has outlined its fundamental aspects, legal context, and contrasts with other forms of property ownership to provide a comprehensive understanding.
