An investor and her business colleague maintain a joint brokerage account structured as Tenants in Common (TIC), with specified ownership interests of 70% and 30%, respectively. Following the unexpected death of the colleague holding the 30% share, which of the following statements accurately describes the distribution of the deceased owner's interest?
- The 30% interest passes to the deceased owner's estate and is distributed according to their legal will or state probate law.Cevap
- BThe 30% interest automatically transfers to the surviving account owner, giving her 100% ownership of the account assets.
- CThe entire account assets are immediately liquidated by the broker-dealer and covered under SIPC policy rules for probate distribution.
- DThe surviving tenant receives full trading authorization over the 30% interest, provided an annual Regulation S-P privacy notice is re-sent.
Cevap
The 30% interest passes to the deceased owner's estate and is distributed according to their legal will or state probate law.
In a Tenants in Common (TIC) account structure, each owner retains a distinct percentage of ownership. Upon the death of any tenant, that owner's proportional share passes directly to their designated estate or beneficiaries as specified by a will or state law, rather than transferring to surviving account holders.
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Tenants in Common (TIC) versus Joint Tenants with Rights of Survivorship (JTWROS)
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