Question

Darlene and Jacob Snell own 800 acres of farmland titled as "joint tenants with rights of survivorship, not as tenants in common". Currently the land is appraised at $5,000 per acre. In addition, Mr. Snell holds a $200,000 CD in his name only, and Mrs. Snell holds a $200,000 CD in her name only. Mr. and Mrs. Snell have no debts. Mrs. Snell's last will and testament provides that "all of my assets at my death shall be divided in three equal portions among my two children and my husband." Mrs. Snell dies unexpectedly, leaving her husband and two children as her sole heirs. Which of the following statements is true?

	a.	The children will inherit 2/3 of Mrs. Snell's interest in the CD and her 50% interest in the farm
	b.	The children will inherit 2/3 of Mrs. Snell's interest in the CD and no interest in the farm
	c.	The children will inherit her CD only
	d.	The children will inherit 2/3 of Mrs. Snell's interest in the CD and 2/3 of her 50% interest in the farm

Answer 1

Joint tenancy with right of survivorship - is a type of co-ownership of estate in which co-owners have a right of survivorship, which means that if one owner dies, that owner's interest in the property will pass to the surviving owner and the property of the deceased owner cannot be inherited by any heirs.

Tenants in common - is a type in which co-owners do not have the right of survivorship, and therefore, when a co-owner dies, his or her ownership stake is passed on to his or her legal heir.

In the given case, farmland is titled as "joint tenants with rights of survivorship, not as tenants in common". Hence, upon death of Mrs. Snell, entire 800 acres of farmland will pass on to surviving owner i.e. Mr. Snell. And the children will not receive any part of farmland.

And the $200,000 CD held by Mrs. Snell in her own name will be divided equally among her husband and two children i.e. 1/3 of $200,000 CD among 3 members, as per her last will and testament.

Answer is b. The children will inherit 2/3 of Mrs. Snell's interest in the CD and no interest in the farm.