What type of agreement allows married couples to own property jointly and removes individual interest upon death?

The correct choice is tenants by the entirety, which is a type of joint ownership exclusive to married couples. This arrangement allows both partners to own the entire property together, and it provides a right of survivorship. This means that if one spouse passes away, the surviving spouse automatically inherits the deceased's interest in the property. This feature is significant because it simplifies matters of inheritance and avoids the property being subject to probate, which can be a lengthy legal process.

This type of ownership also offers some protection from creditors. Since the property is considered to be owned by both spouses as a whole rather than as individual shares, it can only be seized to satisfy the debts of both parties under certain conditions, making it a favorable form of ownership for married couples.

In contrast, tenants in common allows each owner to hold a separate interest in the property, which does not automatically transfer to the surviving owner upon death. Joint tenants do share a right of survivorship, but this form of ownership does not specifically pertain only to married couples and can be severed if one party decides to sell or transfer their interest. Severalty means that the property is owned by one individual person, which does not apply in the context of married couples owning property jointly.