Tenancy (JTWROS · TIC · Tenancy by Entirety)
How jointly-owned property is titled — JTWROS, tenancy in common, or tenancy by the entirety — which decides what happens to it on death or divorce.
Joint tenancy with right of survivorship (JTWROS) passes automatically to the survivor; tenancy in common (TIC) passes each owner's share to their own heirs; tenancy by the entirety adds creditor protection for married couples. The titling determines basis step-up, probate, and creditor exposure — so it's not a clerical detail. A household view that respects ownership form shows who really holds each dollar.
Three ways to hold property together
Joint tenancy with right of survivorship (JTWROS) passes the deceased owner's share automatically to the surviving owner, outside probate. Tenancy in common (TIC) gives each owner a distinct, separately transferable share that passes to their own heirs. Tenancy by the entirety is a married-couple-only form that adds creditor protection — neither spouse's individual creditors can reach the property.
Why the titling isn't a clerical detail
How an asset is titled decides what happens to it on death and divorce, whether it gets a full or partial basis step-up, whether it goes through probate, and whether a creditor can reach it. Two couples can hold “the same” account very differently depending on the tenancy, with materially different tax and protection outcomes — so the ownership form is a planning decision, not a formality.
How Formation handles it
Formation respects ownership form, organizing accounts by who and what actually holds each dollar — joint, individual, or entity — so a household view reflects the real titling rather than lumping everything together. That makes the step-up and probate consequences of each account visible while there's still time to adjust them.
A worked example
A married couple holds a brokerage account JTWROS. When one spouse dies, the account passes automatically to the survivor without probate — and in most states, half the basis steps up. Held instead as tenants in common, the deceased's half would pass under their will to whomever they named, potentially through probate.
Frequently asked
What's the difference between joint tenancy and tenancy in common?
Joint tenancy with right of survivorship passes a deceased owner's share automatically to the surviving owners. Tenancy in common gives each owner a separate share that passes to their own heirs under their will — there's no automatic survivorship.
Does joint tenancy avoid probate?
Yes, for the jointly held asset — the survivor takes it automatically. But it only delays probate to the last surviving owner, and it doesn't substitute for a full estate plan or address what happens when both owners are gone.
In Formation
Joint & titling-aware entities
Related terms
See this in your own numbers.
Formation organizes your whole household by entity and cites every figure to its source — the context that makes terms like this actionable.
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