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Series 7: Opens & Maintains Customer Accounts
Series 7 practice questioneasyAccount Types — Joint Tenants with Right of Survivorship

In a Joint Tenants with Right of Survivorship (JTWROS) account, what happens to the assets when one account holder dies?

  1. AThe assets are frozen until probate is complete
  2. BThe deceased's share passes to their estate
  3. CThe surviving tenant(s) automatically receive the deceased's share✓ Correct answer
  4. DThe assets are divided equally among all heirs named in the deceased's will
Explanation

Why CThe surviving tenant(s) automatically receive the deceased's share

In a JTWROS account, when one tenant dies, their interest passes directly to the surviving tenant(s) by operation of law, bypassing probate. This is the defining feature of right of survivorship and distinguishes JTWROS from Tenants in Common (TIC) accounts, where the deceased's share goes to their estate.

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