What Is a WROS Account With Right of Survivorship?

A WROS account, or an account with Right of Survivorship, represents a specific form of joint ownership for assets. This structure is useful for individuals managing financial and real estate holdings with another person. This article clarifies WROS accounts, how the right of survivorship operates, distinguishes it from other ownership types, and outlines the establishment process.

Defining a WROS Account

A WROS account, or “With Right of Survivorship,” is a common way for two or more individuals to jointly own financial accounts or real estate. This structure grants all owners equal and undivided interest in the asset, with each co-owner having full ownership rights. This arrangement is frequently chosen by married couples or close family members who intend for their jointly held assets to pass directly to the surviving owner(s) upon the death of one owner. A WROS account facilitates a seamless transfer of ownership without a lengthy legal process.

The Right of Survivorship in Practice

The “right of survivorship” is the defining feature of a WROS account, dictating what happens to jointly owned property when one owner dies. During the lifetime of all owners, each individual has equal access and control over the asset. For a joint bank account, any owner can submit trading instructions or request withdrawals without needing permission from the others. However, for significant real estate transactions like selling or refinancing, the consent of all owners is required.

Upon the death of one owner, their interest in the WROS account or property automatically transfers to the surviving owner(s). This transfer occurs by operation of law, bypassing the time-consuming and costly probate process. The right of survivorship supersedes any instructions for that asset included in the deceased owner’s will or trust. The surviving owner(s) gain full ownership and must file a death certificate and other necessary paperwork with the relevant financial institution or county records office. This mechanism simplifies asset transfer.

WROS vs. Tenants in Common

WROS accounts, also known as joint tenancy with right of survivorship (JTWROS), differ from Tenants in Common (TIC) accounts in how assets are handled upon an owner’s death. In a WROS arrangement, each owner holds an equal and undivided interest in the entire property. When one owner dies, their share automatically transfers to the surviving joint owner(s), avoiding probate. This means the deceased owner’s interest does not become part of their estate.

In contrast, Tenants in Common allows co-owners to hold distinct shares of a property or account. There is no right of survivorship with a TIC arrangement. If a tenant in common dies, their share does not automatically pass to the other co-owners; instead, it becomes part of their estate. This deceased owner’s share is then distributed according to their will or through state intestacy laws, which requires a probate court process. TIC ownership does not offer the same probate avoidance benefits as a WROS account.

Establishing a WROS Account

Establishing a WROS account involves specific steps for financial accounts or real estate. For financial accounts like bank or brokerage accounts, individuals visit the financial institution to complete account opening forms. Necessary information includes full legal names, Social Security numbers or Taxpayer Identification Numbers, and addresses for all intended owners. The account application specifies the joint ownership type, and selecting “Joint Tenants with Right of Survivorship” or “WROS” activates the survivorship feature.

For real estate, establishing joint tenancy with right of survivorship requires specific language on the property deed. The deed must explicitly state that ownership is held “as joint tenants with rights of survivorship, and not as tenants in common.” This ensures the legal framework for automatic transfer is documented. All parties must acquire their interest in the property at the same time and from the same source, and they must possess equal and undivided interests. After signing, the deed is recorded with the county recorder’s office.