Right of Survivorship vs. a Will: What’s the Difference?

When planning for the future, it’s essential to understand the tools at your disposal to ensure your wishes are honored and your loved ones are protected. Two commonly misunderstood aspects of estate planning are the right of survivorship and a will. While both play critical roles in transferring assets, they operate very differently. Let’s dive into what each means and when you might use them.

What is the Right of Survivorship?

The right of survivorship is a legal principle that comes into play with jointly owned property. When two or more individuals own property as joint tenants with the right of survivorship, ownership automatically passes to the surviving owner(s) upon the death of one of the joint owners. It is important to note that the right of survivorship takes precedence over a will in cases of jointly owned property with this designation.

Key Features of the Right of Survivorship:

1. Automatic Transfer: Upon the death of one owner, their share of the property is transferred directly to the surviving owner(s) without needing a will or court involvement.
2. Joint Tenancy Requirement: This arrangement applies to property owned jointly under a specific agreement, often referred to as “joint tenancy with the right of survivorship.”
3. Immediate Effect: The transfer of ownership happens immediately upon death, ensuring continuity in property ownership.
4. Not Revocable by Will: Because the right of survivorship overrides a will, the deceased owner’s interest in the property cannot be transferred to anyone other than the surviving joint tenants. This highlights the lack of control over distribution compared to a will, which allows you to designate specific beneficiaries for your assets.

Common Examples:

• Bank accounts jointly held with rights of survivorship.
• Real estate owned as joint tenants.
• Investment accounts with survivorship rights.

What is a Will?

A will is a legal document that outlines how you want your assets distributed after your death. Unlike the right of survivorship, a will allows you to specify beneficiaries for a broader range of assets, including personal belongings, financial accounts, and even guardianship for minor children.

Key Features of a Will:

• Comprehensive Asset Distribution: A will governs the distribution of your estate, including assets not held jointly or those without designated beneficiaries.
• Probate Process: A will must go through probate, a court-supervised process that validates the will and oversees the distribution of assets. In contrast, a will’s distribution process requires going through probate, which can delay asset distribution.
• Flexibility: You can amend or revoke your will at any time while you’re alive and mentally competent.
• Customizable Wishes: A will allows for detailed instructions, such as creating trusts for minor children or donating to charity.

Common Examples:

• Distributing personal property, like jewelry or artwork.
• Designating a guardian for minor children.
• Providing instructions for the care of pets.

Key Differences Between Right of Survivorship and a Will

Examples of When to Use the Right of Survivorship vs. a Will

Both tools serve unique purposes and often complement each other in a comprehensive estate plan. Here’s when each might be appropriate:

When to Rely on the Right of Survivorship:

• You co-own property with someone and want them to automatically inherit it upon your passing.
• You wish to avoid probate for specific assets like jointly held real estate or bank accounts.
• You have a straightforward arrangement where all joint tenants agree on the ownership structure.

Examples of When to Use a Will:

• You need to outline how assets not jointly owned should be distributed.
• You want to designate guardianship for minor children.
• You wish to provide instructions for assets without beneficiary designations.
• You have complex estate planning needs, such as creating trusts or planning for charitable donations.

Combining the Two in Your Estate Plan

Many people benefit from incorporating both the right of survivorship and a will into their estate plans. Using both tools effectively can reduce delays, minimize probate costs, and give you greater control over your legacy.

For instance, if you and your spouse own a house as joint tenants with the right of survivorship, the house automatically transfers to the surviving spouse upon your death, regardless of what your will states. Meanwhile, your will ensures other assets, like personal belongings or financial accounts, are distributed according to your wishes. Using both tools effectively can reduce delays, minimize probate costs, and give you greater control over your legacy.

It is equally important to save your completed will and other critical documents, such as copies of insurance policies, beneficiary designations, or financial notes. Storing these securely in a platform like the Gentreo Digital Vault ensures they are easily accessible when needed. This way, your loved ones can find all essential details in one place, reducing stress during challenging times.

How Gentreo Can Help

At Gentreo, we simplify estate planning to help you protect what matters most. Whether you need to create a will or store your important documents securely in the Gentreo Digital Vault, Gentreo can help. With Gentreo, you can:

1. Create legally binding wills tailored to your needs.
2. Store and share your documents with trusted family members and advisors.
3. Update your estate plan easily as life changes.

Don’t leave your legacy to chance. Start planning today with Gentreo and enjoy peace of mind knowing your loved ones are protected.

Ready to Get Started?

Visit www.gentreo.com to learn more about our estate planning solutions. Take the first step towards securing your future today.

Don’t wait until it’s too late; start your estate planning journey with Gentreo today. By doing so, you’ll not only protect your loved ones but also gain the peace of mind that comes with knowing your legacy is secure.  Click HERE to join now.

This article is for informational purposes only and should not be considered legal advice. Consult with a qualified attorney or estate planning professional for personalized guidance.