Joint Tenants with Right of Survivorship (JTWROS) vs Tenants in Common (TIC)
At death, the owner's share passes automatically to the surviving co-owners. Each owner's share - which can be unequal - passes to their own estate.
What is the difference between Joint Tenants with Right of Survivorship (JTWROS) and Tenants in Common (TIC)?
JTWROS = share goes to the surviving owners, bypassing probate. TIC = share goes to the deceased's estate, through probate.
| Joint Tenants with Right of Survivorship (JTWROS) | Tenants in Common (TIC) | |
|---|---|---|
| In one line | At death, the owner's share passes automatically to the surviving co-owners. | Each owner's share - which can be unequal - passes to their own estate. |
| Example | A couple's JTWROS brokerage account becomes the survivor's alone the moment the first spouse dies. | Two business partners own an account 70/30 as TIC; the 30% partner's share passes under their will. |
| Unit | Retirement Plans, Accounts & Trading | Retirement Plans, Accounts & Trading |
| Series 65 | Section 3: Client Strategies | Section 3: Client Strategies |
What is Joint Tenants with Right of Survivorship (JTWROS)?
Each joint tenant has an equal, undivided interest. When one dies, their share passes directly to the survivors outside probate and regardless of the will. Common for married couples.
What is Tenants in Common (TIC)?
Co-owners can hold unequal percentages, and each can leave their share to anyone. At death a TIC share goes to the decedent's estate and through probate, not to the other owners. Common for business partners and unmarried co-owners.