What is the ownership situation called when property is held without the need for probate upon death?

The correct answer is Joint Tenancy. In a joint tenancy, property is owned by two or more individuals together, and it includes the right of survivorship. This means that when one joint tenant passes away, their share of the property automatically transfers to the surviving joint tenants, bypassing the probate process. This feature makes joint tenancy a popular choice for co-owners wishing to avoid the intricacies and delays that can accompany probating a will.

In contrast, a life estate grants ownership for the duration of a person's life, after which the property reverts to another designated person or entity, leading to a potential probate situation upon the owner’s death. Fee simple ownership is the most complete form of ownership, but it does not inherently provide the right of survivorship and can be subject to probate. Tenancy in common allows two or more people to own property together, but, like fee simple, each co-owner's interest in the property would go through probate upon their death.