With Benefit of Survivorship: Key Facts for Australians in 2025

With benefit of survivorship might sound like legalese, but for many Australians, it’s a crucial phrase that determines how wealth and property move between family members after death. As the landscape of property ownership and inheritance law evolves in 2025, understanding this concept could make a significant difference in how your assets are managed and protected for future generations.

What Does ‘With Benefit of Survivorship’ Mean?

In Australia, the phrase ‘with benefit of survivorship’ refers to a legal arrangement where, upon the death of one property owner, their interest automatically passes to the surviving owner(s). This is most commonly seen in joint tenancies, especially among spouses or de facto partners who own property together. Unlike tenants in common, where each party owns a defined share that can be left to anyone via a will, joint tenants with benefit of survivorship bypass the will entirely—ownership transfers instantly and absolutely to the surviving joint tenant.

• Property: Residential homes held by couples are frequently registered as joint tenants, ensuring the surviving partner is not left in limbo if one passes away.
• Bank Accounts: Some joint bank accounts also operate with survivorship rights, allowing immediate access to funds for the survivor.

This legal structure offers simplicity and peace of mind but comes with important considerations for estate planning and tax.

2025 Policy Updates and Real-World Scenarios

The past year saw several updates affecting survivorship arrangements:

• NSW Land Registry Services introduced streamlined digital lodgement for survivorship applications in 2025, making it easier for surviving owners to formalise their sole ownership.
• Superannuation nominations continue to be a separate process—super benefits are not covered by property survivorship but require binding death benefit nominations to ensure intended beneficiaries.
• Estate tax considerations: The government’s review of capital gains tax (CGT) in 2025 highlighted that, while the transfer of assets via survivorship is generally CGT-free at the time of death, subsequent sale by the survivor may attract CGT, depending on the property’s use and ownership period.

Example: When Ben and Alice bought their Melbourne home as joint tenants, Ben’s unexpected passing meant Alice became the sole owner automatically. She submitted a survivorship application online, avoiding probate delays. However, if she chooses to sell the home later, she’ll need to consider CGT implications based on how long she owned the property individually and whether it remained her main residence.

Should You Choose Joint Tenancy or Tenancy in Common?

Choosing how to hold property is a pivotal decision. Here’s how the options stack up:

• Joint Tenancy (With Benefit of Survivorship):
  • Automatic transfer to surviving owner
  • Bypasses will and probate
  • Best for spouses, de facto partners, and situations where you want the survivor to receive the full asset immediately
• Tenancy in Common:
  • Each owner holds a specific share
  • Can bequeath share to anyone in a will
  • Useful for blended families, investment partners, or where different succession plans are needed

2025 trends show a rise in blended family structures and multi-generational property purchases, making tenancy in common increasingly popular for those wanting tailored estate outcomes.

Key Considerations and Next Steps

Before making or updating property arrangements, ask yourself:

• Who should inherit your share of a property if you pass away?
• Are there tax or Centrelink implications for the survivor?
• Does your super or other assets require separate planning?
• Have you updated your will or binding nominations to reflect your wishes?

Legal and financial advice is vital when choosing your ownership structure, especially as rules continue to change. The right approach can streamline inheritance, avoid family disputes, and potentially reduce tax headaches for your loved ones.