Question

Dale and his son, Clark, have a savings account with a small amount of money in it. The terms of the account stipulate that when Dale or Clark die, the account automatically becomes the account solely of the survivor. This arrangement is known as:

a. Joint Tenancy
b. Tenancy in Common
c. Survivorship Agreement
d. Sole Ownership Agreement

Answer 1

The account arrangement described where the survivor automatically becomes the sole owner is known as joint tenancy with right of survivorship.

Step-by-step explanation:

The arrangement described where a savings account automatically becomes the sole property of the surviving account holder upon the death of the other account holder is known as joint tenancy with right of survivorship. This form of ownership designates that both parties own the property jointly, and upon the death of one, the surviving joint tenant automatically becomes the owner of the entire property. This contrasts with tenancy in common, where each owner has a separate share of the property that does not automatically transfer to the other owner(s) upon death. This type of arrangement is beneficial in avoiding probate proceedings for the property in question.