Final answer:
In a tenancy in common, when a tenant dies, their interest in the property passes to their heirs or beneficiaries and is not automatically transferred to the surviving tenants. State intestacy laws will apply if the tenant dies without a will.
Step-by-step explanation:
If several people hold property as tenants-in-common and one of the tenants dies, his interest in the property will pass to the deceased tenant's heirs or beneficiaries. This is because under tenancy in common, each tenant owns a specified share of the property individually, and that share can be passed on to their heirs or through a will. In contrast to joint tenancy, there is no right of survivorship in a tenancy in common, so the interest does not automatically pass to the surviving tenants. If the deceased individual did not have a will (died intestate), state intestacy laws will determine the distribution of assets, which typically favor close relatives such as a spouse, children, and then further extended family.