SIE (Securities Industry Essentials) Practice Exam

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When one of the individuals in an account opened as Tenants in Common dies, their share of the account:

Is equally divided among the surviving tenants
Goes to their designated beneficiary
Is liquidated and the funds are donated to charity
Goes to their estate

The correct answer is: Goes to their estate

When one of the individuals in an account opened as Tenants in Common dies, their share of the account goes to their estate. This means that the deceased person's portion of the account will be distributed according to their will or state laws. Option A is incorrect because in Tenants in Common, each person owns a specific percentage of the account and it does not automatically go to the other surviving tenants. Option B is also incorrect because it only applies to accounts opened as Joint Tenants with Rights of Survivorship (JTWROS). Option C is incorrect because the funds in the account do not automatically get donated to charity unless stated in the deceased person's will.