What does right of survivorship mean on a bank account?

What does right of survivorship mean on a bank account?

One distinct feature of a joint bank account that is not common among other account types is a right of survivorship, which is an option on all standard joint bank account forms. A right of survivorship stipulates that if one owner dies, 100% of the remaining balance passes to the surviving owner.

How do I know if I have right of survivorship?

The right of survivorship is an attribute of several types of joint ownership of property, most notably joint tenancy and tenancy in common. When jointly owned property includes a right of survivorship, the surviving owner automatically absorbs a dying owner’s share of the property.

Do you pay taxes on a divorce settlement?

Generally, money that is transferred between (ex)spouses as part of a divorce settlement—such as to equalize assets—is not taxable to the recipient and not deductible by the payer. Such plans are always taxable on withdrawal because the money was not taxed when it was contributed. …