Table of Contents
- What Is With Benefit of Survivorship?
- Key Takeaways
- Understanding With Benefit of Survivorship
- Joint Tenancy and Tenancy in Common
- Note on Joint Ownership
- Other Agreements With Survivor Beneficiaries
- Example of With Benefit of Survivorship
- What Is the Difference Between Survivorship and Beneficiary?
- How Long Do Survivorship Benefits Last?
- How Much Are Survivor Benefits?
- The Bottom Line
What Is With Benefit of Survivorship?
Let me explain 'with benefit of survivorship' directly: it's a legal setup where, if you're a co-owner of property and one owner dies, their share instantly goes to the surviving co-owners without getting stuck in probate court delays.
Key Takeaways
This is a legal agreement among co-owners where the survivors get full ownership if one dies, bypassing the usual probate for estate assets. Remember, all co-owners need the same title at the same time and equal shares for it to hold.
Understanding With Benefit of Survivorship
You should know that 'with benefit of survivorship' typically refers to joint tenancy, where assets pass automatically to surviving owners upon death. These setups, often called 'joint tenants with right of survivorship,' apply to things like real estate, businesses, or investment accounts. They skip the probate that normally handles estate transfers.
Joint Tenancy and Tenancy in Common
Survivorship is why most people choose joint tenancy. Common law demands that all co-owners get the title simultaneously, control equal shares, and have equal possession rights—miss any, and it's not joint tenancy. Tenancy in common is the alternative without survivorship; it covers cases that don't meet joint tenancy rules or where owners want their share to go to heirs upon death. Assets from tenancy in common still go through probate, unlike joint tenancy.
Note on Joint Ownership
Joint ownership with survivorship is standard for family or marital properties. Without it, a deceased owner's share enters probate, which could lead to outcomes nobody expected.
Other Agreements With Survivor Beneficiaries
Estate planning often includes survivor benefits in life insurance, retirement plans, annuities, and Social Security, which pass automatically to named individuals upon death. Some policies add riders for the policy itself to transfer to a survivor, like variable survivorship life insurance or joint and survivor annuities.
Example of With Benefit of Survivorship
Take a married couple owning a home with right of survivorship: if one dies, the survivor gets the whole home automatically. Without this or other plans like trusts, the home hits probate, which is slow and might not match inheritance expectations.
What Is the Difference Between Survivorship and Beneficiary?
In retirement, a survivor—often a spouse—gets ongoing benefits after your death, while a beneficiary just receives any leftover account balance. Survivorship pays for the survivor's lifetime; beneficiaries get a one-time payout.
How Long Do Survivorship Benefits Last?
If you're on Social Security, survivors like spouses or children might qualify. These benefits last for a spouse's lifetime, for children up to age 19 if in high school or 17 otherwise, and for disabled adult children if disability started before 22; they can also go to dependent parents, stepchildren, or grandchildren based on ties to the deceased.
How Much Are Survivor Benefits?
Benefits depend on the deceased's earnings. A surviving spouse at retirement age gets 100% of what the deceased would have received. Those aged 60+ but not at retirement get 71.5% to 99%, while younger spouses, children, or dependent parents get 75% to 82.5%.
The Bottom Line
With benefit of survivorship lets a small group share ownership of property or assets, and upon one owner's death, their share goes straight to the survivors, not heirs, avoiding estate settlement hassles and probate.
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