In a tenancy in common arrangement, what happens to a deceased owner's interest?

In a tenancy in common arrangement, when one owner passes away, their interest in the property does not automatically transfer to the surviving co-owners. Instead, the deceased owner's share is passed on to their heirs as specified in their will or, if there is no will, according to state intestacy laws. This characteristic of tenancy in common distinguishes it from joint tenancy, where the right of survivorship dictates that the surviving co-owners automatically receive the deceased's share.

This arrangement allows for flexibility in estate planning, as each owner can determine their own heirs, and their interest can be divided among multiple beneficiaries. Consequently, the deceased's share does not disappear or get forfeited; it continues to exist and be a part of the estate that can be inherited.