Understanding what “community property with right of survivorship” is can seem confusing and overwhelming, especially for business professionals. Essentially, “community property with right of survivorship” is a type of legal ownership of assets that the law of some jurisdictions recognize. In these jurisdictions, this type of ownership allows two people to jointly own an asset while providing that if one of the two dies, the surviving owner automatically obtains full ownership over the asset.
When two or more individuals share ownership in community property with right of survivorship, it is important to understand that the individuals involved have equal rights to the ownership and direct control of the property. This means that all owners must agree in order for any to be able to make decisions, sell, use, borrow against, transfer, or give away the asset.
What Does Community Property With Right of Survivorship Look Like?
In modern times, many couples will use this type of ownership when it comes to certain aspects of their estate planning. For instance, many couples will own a home together titled as community property with right of survivorship. This way, one spouse can be sure that if anything should happen to the other, they will still own the home and its contents without needing to go through any expensive legal battles.
Additionally, “community property with right of survivorship” is increasingly common for investments and savings accounts. Many investors opt to set up their retirement accounts with this condition of ownership so that it will not have to go through probate if one of the owners passes away.
Should You Utilize Community Property With Right of Survivorship?
The decision to use “community property with right of survivorship” rvivorshipboils down to what’s best for an individual or a couple’s situation. That said, it is incredibly important to discuss with a qualified attorney or financial professional before adding this type of ownership to an asset. Doing so will ensure that you know all your available options and make the best decision for your long term plans.
At the end of the day, understanding “community property with right of survivorship” requires an in-depth evaluation of your circumstance and consulting with a qualified specialist. If you are curious whether this type of ownership is right for you, take the time to speak to someone who can provide helpful advice.