BENEFIT OF SURVIVORSHIP Meaning and
Definition
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The term "benefit of survivorship" refers to a legal principle or provision in which ownership rights or assets automatically pass to the surviving owner or co-owner(s) upon the death of one joint owner. It is commonly associated with joint tenancy or tenancy by the entirety in real estate, but can also be applicable to other forms of joint ownership such as bank accounts or investment accounts.
Under the benefit of survivorship, when one joint owner dies, their share or interest in the property or asset is immediately transferred to the surviving owner(s) without the need for probate or any other legal process. This provision ensures the seamless transfer and continuation of ownership interests, enabling the surviving owner(s) to retain full control and use of the property or asset.
The main advantage of the benefit of survivorship is that it simplifies the transfer of ownership upon death, saving time and cost associated with probate proceedings. It also ensures that the deceased owner's share does not become part of their estate and thereby avoids potential estate taxes or claims from creditors. Additionally, it provides a straightforward method for passing assets to a surviving spouse, family member, or designated co-owner(s), promoting continuity and preventing disputes over ownership rights.
It is important to note that the benefit of survivorship is a legally binding provision that must be explicitly stated in the ownership agreement or title documentation. Different jurisdictions may have specific requirements or restrictions regarding the application of this principle.
