What is the Right of Survivorship and How Can it be Used to Avoid Probate?

The right of survivorship is a legal concept that determines what happens to an asset when one of the owners passes away. This right is commonly used in joint bank accounts and real property to ensure a seamless transfer of ownership to the surviving owner(s) without the need for probate.

In the context of bank accounts, when two or more individuals hold a joint account with the right of survivorship, the funds in the account automatically pass to the surviving account holder(s) upon the death of one account holder. This means that the assets in the account are not considered part of the deceased account holder's estate and are not subject to probate proceedings. The surviving account holder(s) gain full ownership and control of the funds immediately upon the death of the other account holder.

The right of survivorship commonly used in real property ownership often in conjunction with the terms “Joint Tenants” or “Community Property”. This applies especially among spouses or family members. When real property is owned as joint tenants or community property with the right of survivorship, the ownership of the property automatically transfers to the surviving owner(s) upon the death of one owner. This transfer of ownership occurs outside of the probate process, allowing for a smooth transition of the property to the surviving owner(s) without the need for court intervention. This transfer also occurs outside a living trust, allowing you to use these forms of ownership to pass your property to your loved ones without the need for a will or trust.

The right of survivorship is a valuable tool that can simplify the transfer of assets such as bank accounts and real property to surviving owners without the complexities of probate. By understanding how this right works and seeking appropriate guidance with legal and financial professionals to ensure that this option aligns with broader estate planning goals and considerations. To consult with a qualified legal professional contact us now!