Series 7 practice questioneasyAccount Types — Tenants in Common
Which of the following is a key characteristic of a Tenants in Common (TIC) account?
- AAll owners must have equal shares
- BThe account requires a minimum of three owners
- COnly married couples may open this type of account
- DUpon death, the deceased owner's share passes to their estate rather than the surviving owners✓ Correct answer
Explanation
Why D — Upon death, the deceased owner's share passes to their estate rather than the surviving owners
In a Tenants in Common account, each owner may hold an unequal share of the assets, and upon the death of one owner, their share passes to their estate (not to the surviving co-tenants). This is the primary distinction from JTWROS accounts, where the surviving tenant automatically inherits the deceased's share.
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