Wendy and Peter want to buy property together. Wendy will be contributing $70,000.00 of the $100,000.00 purchase price, while Peter will be contributing $30,000.00. Wendy has two brothers, John and Michael, whom she loves very much and she really wants them to inherit her share of the property after her death.
Tenants in Common can own unequal percentages of the property, allowing the co-owners to take into account varying levels of contribution. Upon the death of a tenant in common, the share owned by the decedent passes through his or her estate to the beneficiaries determined by will, if applicable, or by intestate succession (without a will).
Joint Tenants must own equal percentages, regardless of contribution. Upon the death of a joint tenant, the share owned by the decedent goes to the surviving joint tenant.
Assume that Wendy and Peter assume ownership in the property as tenants in common. What would happen to Wendy’s share in the property if Wendy died before Peter?
a. Peter would acquire her ownership interest, taking sole title to the entire property.
b. Wendy’s share would go to her estate, to be distributed via her will or via intestate succession.
c. Wendy’s share would go directly to John and Michael, because your siblings always get your property upon death.
d. Wendy’s share would go to her parents.