Types of Ownership
Chapters in this video
- 0:00 Why account titles dictate control, taxes, and probate
- 1:57 JTWROS: equal shares, survivor takes all, weak creditor protection
- 3:29 TIC: divisible shares, no survivorship, guaranteed probate
- 5:02 TBE: the marriage fortress with dual consent and strong creditor protection
- 6:33 CPWROS: the double step-up in basis and nine-state limit
- 8:01 Rapid-fire exam recap
What this video covers
- How joint tenants with right of survivorship (JTWROS) creates equal, undivided ownership where any owner can trade without consent, and the survivor receives all by operation of law
- Why tenants in common (TIC) allows unequal divisible shares but guarantees probate because there is no right of survivorship
- What tenancy by the entirety (TBE) requires: married couples only, dual consent for transfers, and the strongest creditor protection against individual spousal debts
- The double step-up in basis unique to community property with right of survivorship (CPWROS) at the first spouse's death, compared to only the deceased's half in JTWROS
- How divorce dissolves TBE and converts it to TIC in most states, stripping away creditor protection
- The JTWROS exam trap that equal ownership does not equal equal control over transactions
- Why CPWROS is available only in nine community property states plus Alaska (opt-in), and must not be confused with TBE state availability
Read the full lesson, free
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