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SIE practice questionmediumJoint Accounts

In a joint tenants with right of survivorship (JTWROS) account, what happens when one account holder dies?

  1. AThe account is frozen until probate is completed
  2. BThe account is closed and assets are distributed to all named beneficiaries
  3. CThe surviving account holder automatically inherits the entire account✓ Correct answer
  4. DThe deceased's share passes to their estate
Explanation

Why C — The surviving account holder automatically inherits the entire account

In a JTWROS account, when one tenant dies, their interest passes directly to the surviving tenant(s), bypassing probate. This is the 'right of survivorship.' In contrast, a tenants in common (TIC) account would have the deceased's share pass to their estate (B). JTWROS is popular among married couples for this reason — it ensures seamless transfer of ownership.

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