Joint tenancy with rights of survivorship (JTWROS) is a property ownership arrangement where two or more people hold equal stakes in real estate or other assets. When one owner dies, their share automatically transfers to the surviving owners, bypassing probate court entirely.
How Joint Tenancy Works![Joint Tenacy | Torrance Estate Planning Lawyer]()
In a JTWROS agreement, each person named in the tenancy has an equal ownership stake in the property. The defining feature is the right of survivorship - when one owner passes away, their portion is automatically distributed among the remaining living owners without going through probate.
Key Benefits of Joint Tenancy
- Avoids probate: Property transfers automatically to surviving owners
- Immediate access: Survivors can access the property right away
- Cost-effective: No probate fees or court costs
- Privacy protection: Transfer happens privately, not in public court records
Potential Drawbacks to Consider
While JTWROS can be useful, it comes with significant risks:
- Creditor exposure: The other owner's debts, bankruptcies, or lawsuits can affect your property
- Loss of control: You cannot sell or transfer your share without the other owner's consent
- Divorce complications: If the other owner divorces, their spouse may gain rights to your property
- Tax implications: May create unintended gift tax consequences
Better Alternative: Living Trusts
Many estate planning attorneys recommend revocable living trusts instead of joint tenancy because trusts offer:
- Greater flexibility: You can easily add, remove, or adjust assets
- Better control: You decide who gets what and when
- Protection from creditors: Assets are shielded from other parties' financial problems
- Tax advantages: Can include provisions for credit bypasses and tax planning
Related topics: Learn about California wills, dying without a will, beneficiary designations, and estate planning strategies.
