What is Joint Tenants with Right of Survivorship (JTWROS)?
Joint tenants with right of survivorship (JTWROS) is a type of ownership in which all joint owners have equal portions of ownership that are immediately allocated to remaining owners if one owner dies.
How Does Joint Tenants with Right of Survivorship (JTWROS) Work?
Also called tenancy by entirety, property owned jointly with the right of survivorship is wholly owned by all living owners. In other words, unlike joint tenants in common (JTIC), any given owner's ownership percentage does not posthumously become part his estate. Rather, the ownership portion is distributed among the surviving owners and does not pass to heirs of the deceased by will or probate.
For example, suppose Bob and Jack own a seaside holiday apartment jointly with rights of survivorship. If Jack dies, Bob automatically becomes the sole owner of the apartment.
Why Does Joint Tenants with Right of Survivorship (JTWROS) Matter?
Joint tenants with right of survivorship should not be confused with joint tenants in common (JTIC), wherein the portion of a deceased owner does not transfer automatically to remaining owners. note that even though a deceased owner's portion instantly passes to surviving owners under JTWROS, its individual value may be subject to inheritance taxes.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
After the Facebook (Nasdaq: FB) public offering debacle and the August trading...Read More →
When a person asks you, "How did the market do today?" it's safe to assume that he or she is looking for a quote on the most...Read More →
Trendlines are one of the most common and helpful tools in a trader's kit. They are used to show a stock's upwards, downwards...Read More →
For years, when my husband and I went to invest in our IRAs, I was frustrated by not being able to take advantage of the Roth IRA due to our income...Read More →