What Does With Benefit of Survivorship Mean?
With benefit of survivorship refers to a legal situation in which ownership of a joint tenant property passes directly to the other tenant's or tenants' estate in the event of one of the tenant's death. This is opposed to ownership in which the property passes to the decedent's heirs. Benefit of survivorship can be important in property insurance because it can affect who can make claims and who is entitled to the property in the first place.
Insuranceopedia Explains With Benefit of Survivorship
An example of benefit of survivorship would be a situation where two business partners are joint tenants on a rental property. If one of them died, then the other partner, also known as the survivor, would receive the decedent's share of the property. Once the surviving tenant becomes the full owner of the property, then they would be fully responsible for it, including paying taxes and buying property insurance for the rental property.