Ask the Experts!
The professionals at Advanced Underwriting Consultants (AUC) answer the tax questions posed by producers. Here’s the question of the day.
Question: What’s the difference between titling an account as joint tenants with right of survivorship (JTWROS) versus tenants in common (TIC)?
Answer: The primary difference has to do with what happens at the death of one of the account owners.
If the account is titled with JTWROS, at the death of one of the owners, the account is re-distributed automatically to the surviving owner or owners.
If the account is titled with TIC, at the death of one of the owners, a decedent’s portion of the account passes to the decedent’s heirs—probably through the probate process.
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