Rights of survivorship are an important feature of property holding, whereby the ownership of the share of a deceased co-owner is automatically delegated to the surviving co-owner.
This legal concept is most common in South Carolina when people share possession of real estate, money, etc. It is, therefore, crucial to understand how rights of survivorship work to prevent future conflicts.
This blog post will focus on informing the reader about the basic principles of rights of survivorship in South Carolina, the formation and release of such rights as well as the connections to estate planning.
This guide will be useful for those already managing property co-ownership or trying to build their estate.
What Is Right of Survivorship?
The legal concept called rights of survivorship means that if two or more people own assets, upon the death of one, the remaining owner or owners get to take the share of the deceased.
This means that on the death of one owner, the deceased owner’s interest in the property does not go through the estate of the deceased but automatically vests in the surviving owner(s).
This concept is probably most familiar in the context of joint tenancy, a type of concurrent ownership of property where two or more parties share the same interest in an asset.
For instance, if two individuals hold title to a home jointly, with the right of survivorship, if one of them dies, the other party becomes the owner of the home without the need for a legal process.
Survivorship is for the most part employed to facilitate the transfer of property, to save time in the probate processes, and to ensure continuity of ownership.
Nevertheless, it is crucial to realize how this type of tenancy deviates from other types of ownership like tenancy in common where no passing happens automatically and the owner’s interest becomes part of his/her property.
Legal Requirements for the Rights of Survivorship in South Carolina
The laws that govern the rights of survivorship in South Carolina refer to the legal rules that determine the passage of jointly held property at the time of death of one of the owners.
Appreciating these laws helps those who are interested in or already in a situation where they have property under such an agreement.
Joint tenancy with rights of survivorship is the most common type of ownership that includes rights of survivorship. In this case, all the owners have the same stake in the property and this is normally the case.
If one owner dies, their portion is transferred to the other owner or owners by operation of law. As in any conveyance of property, certain words have to be used in the deed or title to indicate an intention to grant rights of survivorship.
This is important to make a clear distinction between joint tenancy with the right of survivorship and tenancy in common which is another common form of ownership in South Carolina.
Also, South Carolina has no provision for tenancy in its entirety, which is a type of concurrent estate for husband and wife.
However, it seems there are two other options available to married couples in South Carolina in order to achieve similar results namely joint tenancy with survivorship rights or other tools for estate planning.
Due to the legal issues surrounding property, the owners should consult professional attorneys and surveyors to well draft their deeds and titles. It is also important to hire a professional lawyer in order to correctly set up rights of survivorship in South Carolina.
Advantages and Disadvantages of Rights of Survivorship
Joint ownership of properties is beneficial to co-owners in many ways, especially through rights of survivorship but it has some demerits that need to be weighed.
Avoiding Probate
The most important advantage of rights of survivorship is to do with the avoidance of probate.
Available legal documents in the case of one owner’s death will pass the title to the property to the surviving owner without any difficulties.
Simplified Ownership Transfer
The fact that the transfer is so often automatic eliminates the amount of time and money that would usually be taken up by estate administration, making it a good choice for co-owners.
Clarity in Ownership
Rights of survivorship thus clearly specify the fate of the property once one owner is gone, thus eliminating confusion that may result from disagreements between the heirs or beneficiaries.
Marriage Insurance
This arrangement can afford protection for married people, to make sure that property remains in the possession of the surviving partner.
Disadvantages
It is important to comprehend these disadvantages as well so that you can determine if this type of property ownership is suitable for you or not.
Limited Flexibility
Tangible assets with rights of survivorship cannot be transferred or modified without the permission of the other owners.
This could pose some problems especially where the co-owners have different objectives or situations.
No Control Over Beneficiaries
Rights of survivorship are somewhat different from a will or trust in that an owner cannot name specific beneficiaries for the share.
The property passes on to the surviving co-owner without reference to the desire of the deceased.
Potential Tax Implications
The surviving owners are subjected to taxes on the property depending on the market value of the property; for instance, inheritance or capital gains tax may be incurred.
Liabilities for Non-Spousal Joint Owners
To non-spouses, as business partners or friends, rights of survivorship introduce potential hassles if and when relationships evolve.
Rights of Survivorship and Estate Planning
The use of survivorship rights when considering estate planning is a smart way of passing property and can help avoid complications for co-owners.
It is crucial to see how this system works with the rest of the estate planning instruments and whether it fits your vision of the future.
Where Rights of Survivorship Comes into Estate Planning
Rights of survivorship are best used for avoiding the process of probate since on the death of one of the co-owners, the share of the deceased passes on to the surviving co-owner.
This can work wonders for people with real estate, joint bank accounts, other assets, or even children. It makes the process of transferring titles less cumbersome and eliminates much of the paperwork that has to be done on the estate.
Comparing Rights of Survivorship to Other Tools
Hence, rights of survivorship although beneficial are definitely not cut out for everyone. There may be other more flexible tools of estate planning like revocable living trusts or payable-on-death (POD) accounts.
For instance, trusts enable property to go to several beneficiaries or be used for certain purposes upon the demise of the owner which is not the case with survivorship that automatically transfers to other co-owners.
Contemplations for Complicated Circumstances
However, where the co-owners are not just spouses, where the property is a business, or where one is contributing much more than the other, the rights of survivorship may not be sufficient for all the parties involved.
For instance, one co-owner may wish to pass on that share to a child or any other beneficiary as opposed to the surviving co-owner.
A qualified estate planning attorney can assist you in analyzing your choices and deciding whether rights of survivorship align with or against your best interests in estate planning.
Why Choose Max Hyde Law Firm
At Max Hyde Law Firm, we know that owning property has legal issues such as the rights of survivorship in South Carolina.
No matter whether you are involved in a joint tenancy, estate planning, or a divorce, we help you to protect your rights and interests.
Our services are comprehensive, and Max Hyde Law Firm assists with all aspects of property ownership, including:
Joint Tenancy and Rights of Survivorship
We assist clients in comprehending the strengths and weaknesses of joint tenancy with rights of survivorship and, therefore, advise on the most appropriate property ownership.
Estate Planning Support
Our team collaborates with you to address survivorship provisions as part of your estate planning goal so you can be assured of the distribution of your assets.
Divorce and Property Division Explained
When you are getting a divorce, we assist you in establishing the process of severing rights of survivorship and how your assets will be distributed when the process is underway.
Revocation of Rights of Survivorship
When you want to dissolve the joint tenancy or change the ownership, we facilitate the process, and all legal procedures are followed.
Clarifications of Misconceptions
It can be confusing to understand how survivorship works and we are here to demystify it, giving you the right direction depending on your circumstances.
Whether you require help with your property management dealing with an official department or any other issue, Max Hyde Law Firm is ready to assist you throughout the process. Call us today at (864) 804-6330 to arrange a free consultation and get started on safeguarding your property and your interests.
