Transferring Joint Property After Death

Property that is owned jointly with rights of survivorship passes automatically to the survivor when one of the joint tenants dies.

Property that is owned jointly with rights of survivorship passes automatically to the survivor when one of the joint tenants dies. While the probate procedure is not required to transfer ownership to the survivor, there are a few things to keep in mind. For federal estate tax purposes, the joint property is included in the estate. Joint property is subject to estate and inheritance tax obligations in the majority of states. Although the joint property may be free from tax under the relevant tax legislation because it goes to a spouse or because the estate is minor, it cannot be assumed that the “avoidance of probate” also entails the “avoidance of taxes.”

In some states, it may be important to file a document with the local county recorder or in the register of deeds to show that the joint owner has died and is no longer one of the joint owners of the property. This obligation may be performed by an executor, successor trustee, or surviving joint owner of the property.