Ownership of property by two or more persons so that each has an undivided interest which at the death of one is passed by will to the deceased's heirs.

• A. Joint Tenancy
• B. Living Trust
• C. Tenancy in Common
• D. Gift Tax

Answer: (C)

Ownership in common is being described. In tenancy in common, two or more people own the property with an undivided right to use it, but each person holds a separate, transferable share. There is no right of survivorship, so when a co-owner dies, that owner’s share passes to their heirs or estate by will or by state law. This matches the idea that the death of one owner leads to his or her share going to the deceased’s heirs.

In contrast, joint tenancy includes a right of survivorship, so a deceased owner’s share would go to the surviving co-owners, not to heirs. A living trust involves the property being owned by the trust and distributed according to the trust terms, not by will. Gift tax deals with taxes on transfers and isn’t a form of ownership.