Many people own property with someone else, such as a spouse, family member, or business partner. The way that property is titled can affect what happens if one owner passes away. One common form of shared ownership is called joint tenancy with right of survivorship.
In South Carolina, this type of ownership determines how property transfers after death. In most cases, when one owner dies, their share automatically passes to the surviving owner. This transfer typically happens without going through probate, which can make the process faster and simpler.
Understanding how joint tenancy with right of survivorship works can help you make better decisions about property ownership and estate planning.
What Is Joint Tenancy With Right of Survivorship?
Joint tenancy with right of survivorship means that two or more people own property together in equal shares. Each owner has the same rights and access to the property. This includes the ability to use and benefit from it.
The key feature of this arrangement is what happens when one owner dies. Instead of their share going through their estate, it automatically transfers to the surviving owner or owners. This is what makes joint tenancy different from other types of ownership.
For example, if a married couple owns a home as joint tenants and one spouse passes away, the surviving spouse automatically becomes the full owner. There is no need to go through probate for that transfer. Because of this, joint tenancy is sometimes used as part of an estate plan.
How Joint Tenancy Works in South Carolina
In South Carolina, joint tenancy with right of survivorship must be clearly stated in the property deed. The deed is the legal document that shows who owns the property. If the correct language is not included, the ownership may be treated differently under state law.
Typically, joint tenants receive their ownership interest at the same time and hold equal shares. This is one of the requirements for this type of ownership. If these conditions are not met, the property may not qualify as joint tenancy.
Deeds affect legal rights, so it’s important that they’re prepared correctly. Small errors in wording can change how the property is handled in the future.
Joint Tenancy vs. Tenants in Common
Another common way to own property with someone else is called tenants in common. While both joint tenancy and tenants in common involve shared ownership, they work differently in how ownership is divided and transferred. With joint tenancy, each owner holds an equal share, and the right of survivorship applies. This means that if one owner passes away, their share automatically transfers to the surviving owner without going through probate.
With tenants in common, ownership does not have to be equal. One person may own a larger percentage, such as 60 percent, while another owns 40 percent. When an owner passes away, their share does not automatically transfer to the other owner. Instead, it typically becomes part of their estate and may be passed to heirs through probate. These differences can have a significant impact on how property is handled in the future. The way property is titled in a deed plays an important role in determining how ownership is transferred.
When Joint Tenancy With Right of Survivorship May Be Helpful
Joint tenancy can be helpful when the goal is to keep property ownership simple after one owner passes away. Because the transfer happens automatically, it can reduce delays and avoid probate for that portion of the property.
This type of ownership is commonly used by married couples who own a home together. It can also be used by family members who share property and want a straightforward transfer process. In some situations, joint tenancy may be part of a larger estate plan. The best option depends on your goals and how you want your property handled over time.
Things to Consider Before Choosing Joint Tenancy
While joint tenancy has benefits, it may not be the right choice for everyone. Each owner has equal rights, which means decisions about selling or refinancing the property must usually be made together. This can create complications if owners disagree.
Adding someone as a joint tenant may also affect your overall estate plan. In some cases, it can unintentionally override instructions in a will. It may also have financial or legal consequences depending on the situation. For these reasons, it is important to carefully consider your options before choosing how to title property.
Understanding Your Legal Options
Property ownership can affect how assets are transferred and how estates are handled in the future. Understanding the differences between ownership types, such as joint tenancy and tenants in common, can help people make informed decisions.
The attorneys at McCutchen McLean assist individuals and families with a variety of legal matters, including property ownership issues, estate planning, and family law concerns, and can help you better understand your situation and the legal options available.
If you have questions about property ownership or estate planning in South Carolina, contact McCutchen McLean’s office at (803) 785-4529 to schedule a consultation.
