With Benefit Of Survivorship

Definition of 'With Benefit Of Survivorship'


A form of joint tenancy ownership where property passes to the survivor(s) when one of the joint members dies, rather than becoming part of the decedent's estate. With benefit of survivorship is a legally defined situation where two or more individuals jointly own property, such as a home, and where the ownership is retained by other joint owners in the event that one of the owners dies. Joint tenants with right of survivorship (JTWROS) is an example of a type of joint tenancy arrangement where all survivors share the assets upon the death of one of the tenants.

Investopedia explains 'With Benefit Of Survivorship'


An important characteristic of joint tenancies is the destructibility of the survivorship feature by one of the joint tenants during his or her lifetime, with or without the consent of other joint tenants. For example, two people may enter a joint tenancy agreement with right of survivorship for the purchase of a home. If one of the tenants dies, his or her undivided share of the home would automatically go to the remaining tenant through survivorship. If, however, one of the tenants transfers his interest in the home to someone else (for example, a niece), the joint tenancy would be severed and the home would then we held as a tenancy in common.


Filed Under:

comments powered by Disqus
Hot Definitions
  1. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific benchmark, such as a SPDR. Unlike actively managed ETFs, passive ETFs are not managed by a fund manager on a daily basis.
  2. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another market so that it balances out. So when examining a specific market, if all other markets are in equilibrium, Walras' Law asserts that the examined market is also in equilibrium.
  3. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action. Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another.
  4. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following:
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option is purchased and the lower premium option is sold - both at the same time. The higher the debit spread, the greater the initial cash outflow the investor will incur on the transaction.
  6. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious debt when government leaders use borrowed funds in ways that don't benefit or even oppress citizens. Some legal scholars argue that successor governments should not be held accountable for odious debt incurred by earlier regimes, but there is no consensus on how odious debt should actually be treated.
Trading Center