Question

A married couple have equal 50% ownership interests in a tenants in common account (TIC). If one party to the account dies, what happens to the shares in the account?

Answer 1

When a party to a tenants in common account (TIC) dies, the shares in the account are distributed according to state intestacy laws.

Step-by-step explanation:

When one party to a tenants in common account (TIC) dies, the shares in the account do not automatically pass to the surviving party. In the absence of a will or trust, the deceased person is considered to have died intestate. In this situation, the passing of assets, including the shares in the TIC account, is controlled by the state intestacy laws. The laws vary by state, but typically the ownership interests of the deceased person would be distributed to their surviving family members, such as spouse, children, parents, or siblings, depending on the specific laws of the state.