Joint Accounts: JTWROS vs. Tenancy in Common (TIC) Estate Rights
Two business partners open a joint brokerage account as Tenancy in Common (TIC) with a 60/40 ownership allocation. If the 60% owner dies, what happens to the deceased partner's share of the account?
In a Tenancy in Common (TIC) account, ownership shares can be unequal (60/40). Upon death, the deceased owner's share passes to their ESTATE or named beneficiaries, NOT to the surviving co-tenant.
Complete Analysis & Legal Rationale
In contrast, in Joint Tenancy with Right of Survivorship (JTWROS), all owners have equal rights, and upon death, 100% of the assets automatically transfer to the SURVIVING co-owner, bypassing probate.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
In TIC, deceased owner's share passes to the estate, preserving fractional ownership.
Describes Joint Tenancy with Right of Survivorship (JTWROS), not TIC.
Escheatment occurs only when there are no heirs or claimants after statutory abandonment periods.
Age 59½ applies to retirement account penalties, not taxable joint accounts.
Official Standard: Legal distinctions between JTWROS and Tenants in Common.