Joint survivability tenancy is a popular way for married couples to own property, where both have an equal share. When one owner dies, their share automatically passes to the other owner without probate. The survivor must fill out a death affidavit. This form of ownership protects the survivor from claims by the deceased’s creditors. However, it is irrevocable and may be subject to inheritance tax. It should be considered carefully, especially in community-owned states, and discussed with an attorney before making a decision.
Joint survivability tenancy is a way of holding ownership of a property. In this form of ownership, two people have an equal share of the property. This is a popular form of ownership for married couples who choose to buy a house or cottage together. When one of the owners dies, his interest in the property automatically passes to the other owner, without the matter having to go through probate. The survivor is required to fill out a death affidavit to establish the claim to him as the rightful owner of the property.
The death certificate of the roommate shows the name of the deceased and the description of the property owned by him. A copy of the death certificate is attached to the affidavit. The document is signed by the survivor, who swears that everything in the document is true.
The advantage of holding title in this way is that it is simple and convenient for the transfer of title to be made after the death of one of the owners. If the matter has to go through probate, that will mean a delay and extra expense for the inheritance. Another reason a couple may want to consider this form of ownership is that once title passes to the survivor, they are protected from any claims the deceased’s creditors have against their estate.
When two people are considering taking title in the form of a joint survivable lease, they need to understand that this decision is irrevocable once made. Once the property has been purchased, the interest of each may be subject to claims by creditors. When ownership of property is transferred from the deceased’s estate to the survivor, it is considered a gift. As such, it is taxable from the date of transfer of ownership.
Joint survivability tenancy should be considered carefully if the landlords live in a community-owned state in the United States. In some cases, the court has ruled that assuming the title of housemate means the property is not considered community property. This designation may mean that the surviving owner will be liable to pay inheritance taxes on the value of the property.
People who are considering buying property together should consider how they want to acquire the property before the transaction is completed. An attorney can fully explain this option and answer any questions. The decision whether to choose the joint lease with right of survival is not to be taken lightly.
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