{"id":353990,"date":"2016-04-04T10:48:06","date_gmt":"2016-04-04T15:48:06","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/tax\/federal-taxes\/your-brokerage-account-tax-implications-of-joint-tenancy.html"},"modified":"2026-02-03T12:53:36","modified_gmt":"2026-02-03T17:53:36","slug":"your-brokerage-account-tax-implications-of-joint-tenancy","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/tax\/federal-taxes\/your-brokerage-account-tax-implications-of-joint-tenancy.html","title":{"rendered":"Tax Implications of Joint Tenancy With Rights of Survivorship (JTWROS)"},"content":{"rendered":"\n
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Tax Implications of Joint Tenancy With Rights of Survivorship (JTWROS)<\/h1>\n\n
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\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

Joint Tenancy<\/span> with Rights of Survivorship<\/span> (JTWROS) is a form of property co-ownership that can bypass probate<\/span>. For spouses, property transfers are exempt from gift taxes<\/span>, and estate taxes<\/span> are deferred until the death of the second spouse. However, non-spouse joint tenancies<\/span> may trigger taxable gifts and affect estate taxes<\/span>, depending on contributions and state laws.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

Joint tenancy<\/span> with right of survivorship<\/span> (JTWROS) is a type of property ownership<\/span> in which multiple people, typically spouses, hold equal shares. This ensures the seamless transfer of property upon one\u2019s death without going through probate<\/span>. It is important to understand any tax consequences<\/span> when titling as a JTWROS<\/a>.<\/p>\n

When you buy a house or open a brokerage account, you may eventually pass it on to another person. More than one person can hold title to real property.<\/span> This includes land, houses, and some personal properties, such as cars. This form of ownership is joint tenancy<\/span> with right of survivorship<\/span><\/a>.<\/p>\n

JTWROS are common when spouses purchase a home. Some states still use the formula \u201ctenants in the entirety,\u201d but spouses are properly joint tenants with right of survivorship<\/span>. When one spouse dies, the entire property passes to the other spouse without probate<\/span> or even a will. JTWROS permits the surviving owner to remain in the home while the remainder of the estate is distributed.<\/p>\n

Joint tenancy<\/span> property is not limited to real estate<\/span>. Cars, boats, bank accounts<\/span>, and brokerage accounts can all be JTWROS. Joint owners often use this method in estate planning<\/span> to ensure the surviving joint tenant has access to the account.<\/p>\n

There are benefits and drawbacks to using JTWROS as tax shelters<\/a>. We\u2019ll review some of the pros and cons of using this method for several popular purchases and other options you can use to pass your property on to your heirs.<\/p>\n

Things To Consider With Your JTWROS<\/h2>\n

Parents may consider adding a child\u2019s name<\/span> to a property deed<\/span> in an effort to avoid the probate<\/span> process<\/span>. This process creates a JTWROS, but it carries potential risks<\/span> and tax consequences<\/span>. If you plan to put a loved one<\/span> on the deed of your home<\/span>, make sure to consult an estate planning<\/span> attorney<\/span><\/a> about possible tax liabilities<\/span> for your family members.<\/p>\n