Agreement with Joint Tenant Survivorship: Understanding the Basics
When it comes to estate planning, one legal agreement that you may come across is an agreement with joint tenant survivorship. This type of agreement allows two or more individuals to own a property together as joint tenants, with the right of survivorship. In this article, we’ll discuss the basics of agreement with joint tenant survivorship and what it means for those involved.
What is an Agreement with Joint Tenant Survivorship?
An agreement with joint tenant survivorship is a legal arrangement between two or more individuals who jointly own a property. This agreement allows the surviving joint tenant to inherit the deceased joint tenant’s interest in the property automatically upon their death, without the need to go through probate. This means that the surviving joint tenant will become the sole owner of the property.
The agreement with joint tenant survivorship is typically used when two or more individuals purchase property together, such as a home or investment property. The agreement outlines the rights and responsibilities of each joint tenant, as well as the process for transferring ownership to the surviving joint tenant.
How Does an Agreement with Joint Tenant Survivorship Work?
When two or more individuals purchase property together, they become joint tenants. This means that each joint tenant has an equal share in the property and has the right to occupy and use the property. Additionally, the joint tenants have the right of survivorship, which means that if one joint tenant dies, their share in the property automatically passes to the surviving joint tenant(s).
To establish an agreement with joint tenant survivorship, the joint tenants must create a legal document that outlines the terms of their arrangement. This document must be signed by all joint tenants and notarized for it to be legally binding.
The agreement typically includes the following provisions:
– The names and contact information of all joint tenants
– The legal description of the property
– The percentage of ownership for each joint tenant
– The responsibilities and obligations of each joint tenant
– The process for transferring ownership to the surviving joint tenant(s)
– The circumstances under which the agreement can be terminated
Advantages of an Agreement with Joint Tenant Survivorship
There are several advantages to using an agreement with joint tenant survivorship:
1. Avoids probate: The right of survivorship means that the property automatically passes to the surviving joint tenant(s) upon the death of the other joint tenant(s). This avoids the need for probate, which can be time-consuming and costly.
2. Simplifies ownership: Joint tenancy allows for multiple individuals to own a property together and simplifies the ownership process. This is especially helpful for couples who cohabitate but are not married.
3. Protects interests: An agreement with joint tenant survivorship protects the interests of the joint tenants. If one joint tenant wishes to sell their share in the property, they cannot do so without the consent of the other joint tenant(s).
Conclusion
An agreement with joint tenant survivorship is a legal arrangement that allows two or more individuals to own a property together with the right of survivorship. This agreement outlines the terms of the arrangement and the process for transferring ownership to the surviving joint tenant(s). It is a useful tool for estate planning, as it avoids the need for probate and simplifies the ownership process. If you are considering purchasing property with another individual, it is important to consult with an experienced estate planning attorney to understand your options and ensure that your interests are protected.