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.
Read This Next
Those of us familiar with selling property know real estate agents don't come cheap. With real estate agent commission and fees amounting to as much as 6% of the selling price (that's $18,...
Read More →
When comparing income statements, many investors focus on gross margins (which is a measure of gross profits divided by sales...
Read More →
It's true that auto loans and home loans offer attractively-low annual percentage rates (APRs), while credit cards offer borrowing power without the risk of ever seeing the repo man haul away your...
Read More →
Markets moving strongly in one direction or the other make trading look easy and seems to offer the key to vast ...
Read More →
Compared with the income statement or the balance sheet, the cash...
Read More →
