What Happens to Jointly Owned Property When Someone Dies in the US?

Detailed Explanation

This page covers the US. For how survivorship works in general and how other countries compare, see what happens to jointly owned property when one owner dies.

Property law in the US is mostly state law. The broad categories below exist across the country, but which ones are available, what the default is, and what paperwork the county wants all vary by state. The examples here are illustrations, not a rule for everywhere.

Joint tenancy with right of survivorship

Owners who hold property as "joint tenants with right of survivorship" (often abbreviated JTWROS) each own the whole together. When one dies, their interest passes automatically to the surviving owner or owners and doesn't go through probate or the will.

To clear the title, the survivor usually records a document confirming the death with the county recorder where the property is. In California, for example, Los Angeles County's process is to record an Affidavit of Death of Joint Tenant with a certified copy of the death certificate and a Preliminary Change of Ownership Report, and pay a recording fee. Other states use similar affidavits or a recorded death certificate. The county recorder's website normally explains its requirements and fees.

Tenancy by the entirety

Some states offer tenancy by the entirety, a form of joint ownership only for married couples (and in some states, registered partners). It carries a right of survivorship, so on the first death the survivor owns the whole. In many states that recognize it, it also protects the property from creditors of just one spouse during the marriage. Not every state has it, and those that do differ on whether it covers only real estate or other assets as well.

Community property states

The IRS lists nine community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. In these states, most property acquired during a marriage belongs to both spouses equally, regardless of whose name is on it. On a death, the deceased spouse's half of the community property generally passes under their will or the state's intestacy rules, not automatically to the survivor, unless it was held in a survivorship form. Some community property states offer "community property with right of survivorship", which combines the two.

Tenants in common

Tenants in common each own a separate share, which can be unequal. When one dies, their share goes through their estate to whoever inherits under the will or state intestacy law, and probate may be needed before it can be transferred or sold.

Joint bank accounts

According to the CFPB, most joint bank and credit union accounts are held with rights of survivorship, so the money passes to the surviving owner. Some are titled as tenants in common, in which case the deceased's share goes to their heirs. State law can also matter. Texas, for example, doesn't presume survivorship just because an account is joint; it requires a written agreement signed by the person who died. A payable-on-death (POD) account is a different arrangement: the named beneficiary has no access during the owner's lifetime but receives the balance on death.

Federal estate tax

Jointly owned property is counted in the deceased's gross estate, though not always in full:

• Married couples: where a married couple hold property as joint tenants with survivorship or as tenants by the entirety (and they're the only owners), one-half of the value is included in the first spouse's estate.
• Everyone else: for joint owners who aren't married to each other, the full value is included unless the survivor can show they contributed to buying it, in which case the part attributable to their contribution is left out.

Very few estates owe federal estate tax. For deaths in 2026, the IRS basic exclusion amount is $15,000,000, and property passing to a surviving spouse who is a US citizen generally qualifies for the marital deduction. Some states have their own estate or inheritance taxes with much lower thresholds, so check the rules for the state where the deceased lived.

Income tax basis when the survivor later sells

This is often the part that matters most in practice. Inherited property generally takes a "stepped-up" basis equal to its fair market value at the date of death, which reduces capital gains tax on a later sale. For a surviving spouse, IRS Publication 551 explains that the inherited half of a qualified joint interest gets the stepped-up value, while the survivor's own half keeps its original cost basis. In community property states the rule is more generous: the whole property, including the survivor's half, generally takes the value at death as its new basis. For joint owners who weren't married, the basis generally follows how much of the property was included in the deceased's estate.

Things to Consider

• Check the deed wording first. Survivorship depends on the words in the recorded deed and on state law, not on what the owners assumed.
• The mortgage doesn't go away. Federal law generally stops the lender calling in the loan because of the death, but repayments continue. A survivor can ask the servicer to confirm them as a successor in interest.
• Retirement accounts and life insurance are separate. IRAs, 401(k)s and life insurance pass to the named beneficiaries, whatever the deed or will says.
• Property in more than one state. Each property follows the rules of the state where it's located, which can mean dealing with more than one county, or probate in more than one state for property held as tenants in common.
• Disputes and larger estates need advice. If the title is unclear, the owners' contributions are disputed, or estate tax could apply, a probate or estate attorney in the relevant state can help.

Common Mistakes

• Assuming "joint" means survivorship. A deed or account that just names two people may create a tenancy in common under state law, especially for unmarried co-owners.
• Not recording the death. Leaving the deceased on the deed causes delays when the survivor sells or refinances.
• Missing the basis step-up. Selling without working out the new basis can mean overpaying capital gains tax, or struggling to prove the figure years later. A date-of-death appraisal is worth keeping.
• Relying on a will to leave a share of joint property. A share held with survivorship passes to the co-owner regardless of what the will says.