Joint Tenancy with Right of Survivorship

Joint Tenancy with Right of Survivorship

Joint Tenancy with Right of Survivorship (JTWROS) is a form of co-ownership of property where two or more individuals hold title to the property together, with each having an equal share. A key feature of this arrangement is that upon the death of one joint tenant, their interest in the property automatically passes to the surviving joint tenant(s), rather than being transferred according to the deceased’s will or the state’s intestacy laws.

This type of ownership is typically used for real estate, bank accounts, and other property types. In a JTWROS, all joint tenants must acquire their interests at the same time, through the same deed, and share equal rights to the property. This ensures that no tenant can independently sell or transfer their interest without the consent of the other tenants.

For example, if two siblings own a house as joint tenants with right of survivorship, and one sibling passes away, the surviving sibling automatically becomes the sole owner of the house, without the need for probate. This feature makes JTWROS a popular choice for couples and family members who want to ensure that property passes directly to the surviving co-owner without the complications of probate.

In Texas, establishing a JTWROS can be an effective estate planning tool, allowing for a seamless transition of property ownership. However, it’s important to consider potential implications, such as creditors’ claims against the property and tax consequences, which may arise from joint ownership. Consulting with an estate planning attorney can help clarify these issues specific to Texas law.