Business, Legal & Accounting Glossary
JTWROS, an acronym meaning joint tenants with right of survivorship, is a legal way to hold real property in which two or more people share ownership. All tenants have equal rights to the property. When property is held in JTWROS and one of the joint tenants dies the ownership of the property passes directly to the other joint tenant(s). Assets held in JTWROS do not enter the decedent’s estate (although estate taxes and/or gift taxes may apply) or go to the beneficiaries of the will. Indeed, if assets held in JTWROS are listed in the will and any of the joint tenants survive the decedent, the JTWROS supersedes the bequest and ownership passes to the surviving joint tenant. JTWROS is a common way for couples, married and unmarried, to hold property. This can include principal residences, as well as bank or brokerage accounts. In some cases, JTWROS can also be used for business partners to hold certain assets (e.g. business property). It is important to note that liabilities associated with a property owned in JTWROS remain attached to such property in the event of the death of a joint tenant.
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This glossary post was last updated: 9th February, 2020 | 2 Views.