How is the property held by the last surviving joint tenant treated?

When a joint tenancy exists, the property is co-owned by multiple parties with the right of survivorship. This means that if one joint tenant dies, their share automatically passes to the surviving joint tenants. When the last surviving joint tenant passes away, the property no longer has any co-owners left to convey the interest through survival, and thus the ownership transforms.

In this scenario, the last surviving joint tenant owns the property outright, meaning they hold sole title to the property. This is referred to as ownership in severalty. It distinguishes the sole ownership from joint ownership, which involves multiple parties.

It's important to understand that at this point, the last surviving joint tenant is free to do with the property as they wish, including selling or transferring it; they have full control and can make unilateral decisions regarding the property without needing consent from other co-owners, which would have been necessary in a joint tenancy situation.

The other options do not apply in this context since there is no life estate created upon the death of the last surviving joint tenant, the property does not escheat to the state if there are heirs or a valid will, and it does not automatically pass to heirs without a will or other legal means in place after the last tenant's