With Benefit of Survivorship: What It Is and How It Works

“With benefit of survivorship” is a legal arrangement that lets a deceased co-owner’s share of property pass immediately to the surviving co-owner(s), avoiding probate. It most commonly appears in joint tenancy arrangements where ownership automatically vests in the survivor(s) when one owner dies.

How it works

• Co-owners hold the same title to an asset and have equal ownership interests and equal rights to possess it.
• When one co-owner dies, their share transfers automatically to the surviving co-owner(s), without probate.
• This transfer occurs by operation of law — no executor or court transfer is required for that asset.

Joint Tenancy vs. Tenancy in Common

• Joint tenancy (with right of survivorship): Requires that all owners acquire title at the same time, hold equal shares, and have equal possession rights. On an owner’s death, the survivor(s) automatically receive full ownership.
• Tenancy in common (TIC): Owners can hold unequal shares and acquire title at different times. A tenant in common can leave their share to heirs or other beneficiaries; those shares typically pass through probate unless other estate planning tools apply.

Choosing joint tenancy is common for spouses or family members who want ownership to pass automatically to the survivor. Tenancy in common is used when owners want the flexibility to bequeath interests to others.

Other survivor-designated arrangements

Survivor benefits also appear in other financial and insurance contexts:
– Life insurance and certain annuities can name a survivor as beneficiary or include riders that transfer the policy or annuity to a surviving party (e.g., variable survivorship life insurance, joint-and-survivor annuities).
– Retirement accounts and pensions often allow a named survivor or beneficiary to receive ongoing benefits or remaining balances.

Example

If spouses own a house as joint tenants with right of survivorship, the surviving spouse becomes sole owner automatically when the other dies. Without that arrangement (or other estate planning like a trust), the deceased spouse’s share would typically be handled through probate.

Survivorship vs. beneficiary (retirement and social benefits)

• Survivorship benefits: Often refer to ongoing payments to an eligible survivor (commonly a spouse) that continue for the survivor’s lifetime.
• Beneficiary distributions: Typically refer to a remaining account balance paid out to a named person or entity after the owner’s death.

Social Security survivor benefits — who and how long

• Eligible survivors can include a spouse, dependent children, and in some cases dependent parents or disabled adult children.
• A surviving spouse may receive benefits for life. Children can receive benefits until age 18 (up to age 19 if still in high school); disabled adult children may qualify if their disability began before age 22.
• The amount and duration depend on the specific program rules and the deceased person’s earnings record.

How much are survivorship benefits?

Amounts vary by program and the deceased’s earnings history:
– Social Security survivor benefits are based on the deceased’s work record. A surviving spouse at full retirement age may receive up to 100% of the deceased’s benefit; younger spouses and other survivors may receive a reduced percentage depending on age and circumstances.
– Life insurance, annuities, and retirement accounts pay based on policy terms or plan rules.

Key takeaways

• “With benefit of survivorship” enables automatic transfer of a deceased co-owner’s share to the surviving owner(s), avoiding probate for that asset.
• Joint tenancy with right of survivorship requires simultaneous acquisition of title, equal ownership shares, and equal possession rights.
• Tenancy in common allows unequal interests and probate transfer to heirs unless other estate planning is in place.
• Survivor benefits also apply in insurance, annuities, retirement plans, and Social Security; rules and payout amounts vary by program.