Joint tenancy with right of survivorship is one of several ways that two or more people can own an interest in the same property at the same time. This type of ownership applies to both personal property - furniture, cars, boats, bank accounts, CD's - and to real property - homes, buildings and land. Other ways more than one person can own an interest in the same property include trusts, partnerships and as "tenants in common." A married couple may hold property as "tenants by the entirety", which is similar but not the same as joint tenancy with right of survivorship. You may wish to investigate which type of ownership is best suited to your needs.

Joint tenancy with right of survivorship is different from any other way for two or more people to own property because it gives all joint tenants what is known as the "right of survivorship". This means that, if one of the joint tenants dies, his share automatically goes to the other joint tenants who survive him. In some states the survivorship position is created automatically when the property is acquired by two or more people. This is not the case in Tennessee. If you want to create a joint tenancy with right of survivorship in Tennessee, you must specify in the document creating the parties' ownership in the property that the owners are joint tenants with right of survivorship.

One advantage to joint tenancy with right of survivorship is that, upon the death of one joint tenant, no probate administration is required to transfer the property since the property automatically passes to the surviving joint tenants. Probate is the legal process for changing ownership of property from someone who has died to the beneficiaries named in a will or surviving relatives who are to receive the property. Many people put their property in joint tenancy with right of survivorship just because they want to avoid the expense and delay of probate. However, in some situations, other legal proceedings will be required to properly terminate a joint tenancy with right of survivorship interest - including the determination of inheritance taxes due, clearing the property of inheritance tax liens and placing it of record name in the survivors. If the value of the property is substantial, these procedures may be just as expensive and take just as long as probate.

Joint tenancy with right of survivorship is not a way to avoid paying taxes. Federal estate taxes and state inheritance taxes must still be paid on interests received by survivorship in joint tenancy with right of survivorship. In some instances, the creation of joint tenancy with right of survivorship may result in having to pay gift taxes.

Joint tenancy with right of survivorship also has other advantages and disadvantages.

Each case is different, however, and before you make up your mind, you should talk to a lawyer who can advise you in deciding which form of ownership is best for your needs.

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The information available through TBALink LawBytes is basic legal information and is not a substitute for legal advice. LawBytes is provided by the Tennessee Bar Association as a public service and for general information only. It should not be considered legal advice. You should consult your attorney if you have questions concerning any specific situation. If you do not have an attorney, may we suggest that you contact your local bar association's referral service. The topics covered through TBALink LawBytes will provide basic information and should make it easier for someone with a problem to decide whether they need professional help from a lawyer or if another agency could provide them with assistance.