Student Question from Etebe
Course: Estate Planning
Good evening, #7 on the review question…why would four business associates with equal partnership be tenants in common? I thought it would be JTWROS as their interest is equal and undivided. Thanks.
7. An investment by four business associates, each wishing to contribute 25% of the purchase price.
- 100% in Joint Tenancy with Right of Survivorship
- 100% as Tenants by the Entirety
- 100% as Tenants in Common
Great to hear from you! Thanks for sending in your question. So, JTWROS is most appropriate for married couples, not business owners. The main reason is that when one person dies, their ownership rights go directly to the other owners. Most people would want their family to have their ownership rights.
You may want to go back to the page titled “Types of Jointly-Owned Property” in Estate Planning – Lesson 1 and read especially that part at the bottom of the table, “When is it appropriate” for each type. This summarizes each type of ownership and when it is appropriate.
Let me know if you have any other questions here!