What is the effect of depositing funds in a joint bank account with survivorship rights?

• A. It creates a presumption of joint tenancy with right of survivorship
• B. It creates a tenancy in common by default
• C. It must be probated as a non-probate transfer
• D. It requires all holders to consent to disposition

Answer: (A)

When funds are placed in a joint bank account with survivorship rights, the arrangement creates a right of survivorship—that is, a joint tenancy with right of survivorship. This means that upon the death of one owner, the surviving owner automatically owns the entire balance, and the decedent’s interest does not pass through the will or intestate succession to heirs. The funds in that account are effectively transferred outside the probate process for the portion held in joint tenancy.

Tenancy in common would not apply here by default because, unlike joint tenancy, a tenancy in common does not carry a right of survivorship; each owner's share could pass by will or to heirs. The idea of probate is also misleading: the survivorship feature means the transfer happens outside probate for the joint-held funds, not that it must be probated as a non-probate transfer. Finally, requiring all holders’ consent to dispose is not the usual rule in a joint account with survivorship; typically, each co-owner has the right to withdraw or otherwise dispose of funds, though bank rules can affect procedures in practice.