Buying a property is a major financial investment for most individuals. Some people may not realize that the estate classification of that real property can have an impact on what happens to the property in the future.
For those who are purchasing the property with another person, such as a spouse, the information on the title is critical. One thing that might be important is the right of survivorship.
What does right of survivorship mean?
The right of survivorship is a legal arrangement in which two or more individuals own property together. If one person passes away, their interest automatically transfers to the surviving owner. This type of ownership can avoid probate and is often used to ensure that property moves directly and fully to the new owner.
Arizona recognizes this right under A.R.S. § 33-431. To create it, the deed must explicitly say the property is held “with right of survivorship.” It’s not enough to just list multiple owners. The law requires clear language, and all parties must sign the deed to agree to this form of ownership.
Why is the right to survivorship important?
The right to survivorship is important because it can streamline the ownership process if one owner dies. There’s no need to include the property in the decedent’s estate. This can save time, court costs and potentially reduce family conflict.
Once the right of survivorship is in place for real property, it can be difficult to change. Selling or transferring the property to another party usually requires an agreement from all named owners. Because of the benefits and tradeoffs, it may be best to discuss the right of survivorship with someone familiar with this type of real estate classification.
