Quick Answer
JTWROS and tenancy by the entirety pass a deceased owner's share automatically to the survivor and skip probate; tenants in common has no survivorship, so a deceased owner's share goes through probate. Community property is unique for its double step-up in basis. All four forms still count the deceased owner's share in their taxable estate.
How property is titled determines who controls it during life and who receives it at death. The four main forms of co-ownership each have different rules for survivorship, probate, creditor protection, and estate taxation.
Memory Aid:
- JTWROS = "Right Of Survivorship" (survivor gets all, avoids probate)
- TIC = "In Common" (your share goes to your estate, requires probate)
- TBE = "By the Entirety" (married only, both must agree)
Joint Tenants with Rights of Survivorship (JTWROS)
- Two or more owners hold equal, undivided interests in the property
- Upon death of one owner, their share automatically passes to the surviving owner(s) (this is the right of survivorship)
- Bypasses probate entirely; transfer happens by operation of law
- Selling or encumbering the whole property requires all owners; but any single owner can transfer or encumber their own interest unilaterally, which generally severs the joint tenancy for that share (converting it to a tenancy in common)
- Commonly used by married couples, but available to any combination of individuals (siblings, business partners, etc.)
- The deceased owner's share is included in their taxable estate (based on contribution to purchase)
Exam Tip: Gotchas
- JTWROS is not limited to married couples. Any two or more people can hold property as JTWROS. The marriage-only form is tenancy by the entirety.
Tenants in Common (TIC)
- Two or more owners; each owns a specified percentage (can be unequal, e.g., 60/40)
- No right of survivorship: when an owner dies, their share passes through their estate (via will or intestate succession), not to the other owners
- Each owner can independently sell, transfer, or bequeath their share without the other owners' consent
- Each owner's share is part of their taxable estate
- Subject to probate (the deceased owner's share goes through their estate)
Exam Tip: Gotchas
- TIC owners can have unequal shares and can sell their own share independently, with no effect on the other owners. A JTWROS owner can also transfer their own share unilaterally, but doing so severs the joint tenancy for that share; selling the property as a whole still needs every JTWROS owner's consent.
Tenancy by the Entirety
- Available only to married couples (in states that recognize it)
- Similar to JTWROS but with additional protections:
- Neither spouse can sell or encumber the property without the other's consent
- Creditors of only one spouse generally cannot reach the property
- Automatically includes right of survivorship; bypasses probate
- Created by default in some states when married couples take title together
Exam Tip: Gotchas
- Tenancy by the entirety is the only ownership form with built-in creditor protection. A creditor of just one spouse generally cannot force a sale of the property. JTWROS offers no such protection.
Community Property
- Recognized in nine states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin
- Property acquired during the marriage is owned equally (50/50) by both spouses, regardless of who earned the income
- Property acquired before marriage or received as a gift/inheritance remains separate property
- Community property with right of survivorship (CPWROS): some community-property states let spouses title property this way, adding automatic survivorship (bypasses probate) on top of the standard community-property rules. NASAA names this form specifically, alongside JTWROS, TIC, and tenancy by the entirety
- Double step-up in basis: Both halves of community property may receive a step-up in basis at the death of one spouse (a significant tax advantage over other ownership forms)
Exam Tip: Gotchas
- The double step-up in basis is unique to community property. For spousal JTWROS and tenancy by the entirety, only the deceased spouse's half generally gets a step-up. (For JTWROS between non-spouses, the share included in the estate, and thus stepped up, instead depends on who contributed the funds.) Community property can save the surviving spouse significant capital gains tax.
Comparison Table
| Feature | JTWROS | TIC | Tenancy by Entirety | Community Property |
|---|---|---|---|---|
| Who can own? | Any 2+ people | Any 2+ people | Married couples only | Married couples only |
| Ownership shares | Equal | Can be unequal | Equal | Equal (50/50) |
| Right of survivorship | Yes | No | Yes | Varies by state |
| Bypasses probate? | Yes | No | Yes | Depends on state law |
| Creditor protection | No | No | Yes (one spouse's debts) | Varies by state |
| Can sell independently? | Own share only (severs the tenancy); whole property needs everyone | Yes | No | Varies by state and property type |
| Step-up in basis at death | Deceased's share only (spousal); contribution-based if non-spousal | Deceased's share only | Deceased's share only | Both halves (double step-up) |
What Should You Check on Exam Day?
- JTWROS and tenancy by the entirety pass property by survivorship and bypass probate; tenants in common has no survivorship and goes through probate
- Tenancy by the entirety is married-couples-only and is the only form with built-in creditor protection against one spouse's debts
- Community property is the only form with a double step-up in basis (both halves step up, not just the deceased spouse's half)
- Bypassing probate is not the same as reducing estate tax: all four ownership forms still include the deceased owner's share in the taxable estate
- JTWROS is not limited to married couples; tenancy by the entirety is the marriage-only form