What is Tenants in Common (TIC)?
Tenants in common (TIC) describes an ownership status that applies when a property is severally owned by two parties.
How Does Tenants in Common (TIC) Work?
If two co-owners of a property are tenants in common, they own the property independent of one another. This means that each tenant does not enjoy the benefits of survivorship in the event of the other's death.
In other words, the ownership portion belonging to the deceased is not automatically inherited by the surviving owner. Rather, the deceased's ownership portion is passed down to the beneficiary designated in the will of the deceased. This beneficiary, or heir, enjoys the benefits of property ownership and assumes all liability in connection with his/her share of the property. Moreover, since all action on the property must occur jointly, the beneficiary, under TIC, has a legitimate voice on any decisions made in connection with the property.
Why Does Tenants in Common (TIC) Matter?
TIC ensures that a co-owner of a property may legally pass his/her share of the property to a designated heir. For this reason, it is important that the ownership portion is clearly delineated so as not to encroach upon that of the other tenant.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
