Legal Definitions - community property with right of survivorship

Community property with right of survivorship is a specific legal arrangement available to married couples in certain states that recognize "community property." This arrangement allows spouses to own assets together in a way that ensures a smooth and automatic transfer of ownership upon the death of one spouse.

Specifically, if a married couple holds property as community property with right of survivorship, the deceased spouse's share of that particular asset automatically passes directly to the surviving spouse. This means the asset does not have to go through the often lengthy and complex legal process known as probate, which is typically required to distribute a deceased person's assets according to their will or state law.

Here are some examples to illustrate this concept:

• Joint Investment Account: Imagine a married couple, Lisa and Mark, who live in a community property state. They open a brokerage account together and specifically title it as "community property with right of survivorship." They both contribute to this account over many years, building up a portfolio of stocks and bonds.

  If Mark were to pass away, his half-interest in the investment account would not become part of his estate to be probated. Instead, Lisa would automatically become the sole legal owner of the entire account balance and all its contents. She would simply need to present Mark's death certificate to the brokerage firm, and the account would be re-registered solely in her name, allowing her immediate and full control over the investments without any court involvement.

• Vacation Cabin: Consider another couple, Sarah and David, who purchase a vacation cabin in a community property state. They decide to title the property as "community property with right of survivorship." Both contribute to the purchase and maintenance of the cabin, enjoying it together for many years.

  Should Sarah pass away, her ownership share of the vacation cabin would automatically transfer to David. He would become the sole owner of the entire property, including all its rights and responsibilities, without needing to go through probate court to formally transfer Sarah's interest. This ensures David can continue to use, manage, or sell the cabin without legal delays or complications arising from Sarah's estate.