How to Remove Right of Survivorship from a Deed
Right of survivorship is a crucial aspect of joint ownership, dictating what happens to property upon the death of one owner. Understanding how to remove it is important for those who wish to alter the inheritance plan or ensure specific beneficiaries receive the property. This process is legally complex and varies significantly by state, so consulting a real estate attorney is strongly advised. This guide provides a general overview and should not be considered legal advice.
What is Right of Survivorship?
Before diving into removal, it's essential to grasp the concept. Right of survivorship means that when one joint tenant dies, their ownership automatically transfers to the surviving joint tenant(s). This bypasses the usual probate process, ensuring a quicker and often less expensive transfer of ownership. This is often seen in "Joint Tenants with Right of Survivorship" (JTWROS) or "Tenants by the Entirety" designations on the deed.
Why Remove Right of Survivorship?
Several reasons might prompt someone to remove right of survivorship from a deed:
- Estate Planning Changes: Circumstances change. Perhaps the joint owners' relationship has deteriorated, or they've updated their wills to specify different beneficiaries.
- Protecting Assets from Creditors: In some situations, removing right of survivorship might offer better asset protection for one owner.
- Specific Inheritance Wishes: Removing the right allows for the property to be passed on according to a will, rather than automatically transferring ownership.
How to Remove Right of Survivorship: The Process
The method for removing right of survivorship depends heavily on the jurisdiction (state) and the type of ownership (JTWROS or Tenants by the Entirety). Generally, it involves creating a new deed.
1. Agreement of All Owners: Every joint owner must agree to sever the right of survivorship. This requires their signatures on the necessary legal documents. Disagreements can lead to lengthy and expensive legal battles.
2. Preparation of a New Deed: A qualified attorney will draft a new deed that clearly states each owner's share of the property as tenants in common (TIC). Tenants in common means each owner has a distinct, inheritable share of the property.
3. Execution and Recording: The new deed must be properly executed (signed and witnessed according to state law) and recorded with the relevant county recorder's office. This officially updates the public record and removes the right of survivorship.
4. Potential for Transfer Taxes: Depending on your location, transferring ownership this way might trigger transfer taxes or other related fees.
Frequently Asked Questions (PAAs)
How much does it cost to remove right of survivorship?
The cost varies significantly based on location, attorney fees, recording fees, and any potential transfer taxes. Expect to pay several hundred to several thousand dollars.
Can I remove right of survivorship without the other owner's consent?
Generally, no. All joint owners must agree to the change. Attempting to do so unilaterally could result in legal action.
What happens if one owner dies before the right of survivorship is removed?
The property will automatically transfer to the surviving owner(s) according to the right of survivorship clause in the deed.
Is it possible to remove right of survivorship from a deed after one owner has passed away?
This is generally not possible. The right of survivorship transfers ownership upon death, making any subsequent actions moot. The property will pass to the heirs of the deceased owner as defined by the previous deed and applicable state law.
What are the tax implications of removing right of survivorship?
Tax implications vary significantly by state and jurisdiction. Consult a tax professional for specific advice related to your situation.
Disclaimer: This information is for educational purposes only and should not be considered legal advice. The process of removing right of survivorship is highly dependent on specific state laws and individual circumstances. It's crucial to consult with a qualified real estate attorney in your jurisdiction to ensure the process is carried out correctly and legally. Failing to do so can lead to legal disputes and financial losses.
