Joint Tenancy

Joint Tenancy can exist between any number of people. These people can be relatives, non-relatives, husband, or wife. The relationships between the people involved make no difference.

This is an arrangement whereby each joint owner is considered to be an owner of the entire asset. Each has equal rights and obligations with respect to the asset. The asset passes to the surviving joint tenant outside the will, free of probate, by "operation of law."

In many states, assets held jointly by spouses pass free of state death taxes. Jointly held property is included in the gross estate of the deceased to the extent of the decedent's contribution or interest in the property. If the husband and wife own the property jointly ("tenancy by the entirety"), one-half of the value is included in the gross estate of the first spouse to die.