The term “With Benefit of Survivorship” refers to a legal arrangement in which the ownership rights of a deceased individual automatically transfer to the surviving co-owners. This principle is commonly applied in joint ownership structures such as joint tenancy and tenancy by the entirety.
How Does “With Benefit of Survivorship” Work?
When property is owned with the benefit of survivorship, the following mechanisms come into play:
Joint Tenancy
In a joint tenancy, two or more individuals hold equal ownership shares. Upon the death of one owner, their share passes automatically to the surviving joint tenants. This transfer does not require probate proceedings, making it a popular choice for simplifying estate transfers.
Tenancy by the Entirety
This is a special type of joint tenancy available only to married couples. It provides not only the right of survivorship but also protects the property from the individual debts of one spouse. Upon the death of one spouse, the surviving spouse automatically gains full ownership.
Legal Considerations
The creation of a joint tenancy or tenancy by the entirety must clearly express the right of survivorship. Legal documentation, including deeds and titles, must explicitly state the survivorship clause. Failure to do so may result in a default to tenancy in common, where no automatic survivorship right exists.
Example of “With Benefit of Survivorship”
Consider a married couple, John and Jane, who own a home as tenants by the entirety. If John passes away, Jane automatically inherits John’s share of the property, thus becoming the sole owner without the need for probate court intervention.
Related Terms
- Tenancy in Common: Unlike joint tenancy, tenancy in common does not provide the right of survivorship. Each co-owner holds an individual interest that can be sold or bequeathed independently.
- Probate: Probate is a legal process through which a deceased person’s estate is administered and distributed. The right of survivorship helps to avoid the necessity of probate for the specified property.
FAQs
What types of property can be owned with the benefit of survivorship?
Can the right of survivorship be revoked?
Does the right of survivorship override a will?
Summary
The concept of “With Benefit of Survivorship” streamlines the transfer of property upon the death of an owner, ensuring that the surviving co-owners automatically receive the deceased owner’s share. This arrangement simplifies estate planning and helps avoid lengthy probate procedures.
For comprehensive estate planning, always consult legal experts to ensure proper documentation and adherence to relevant laws.
