Customer AccountsQuestion 70 of 110
Two business partners open an account as tenants in common with a 70/30 ownership split. If one partner dies, that partner's share:
a.Passes to the surviving partner
b.Is divided equally between the surviving partner and the deceased's heirs
c.Passes to the deceased partner's estate according to that partner's will or state law
d.Reverts to the broker-dealer until a court orders distribution
Explanation
Tenants in common allows unequal ownership percentages and each owner's share passes to the owner's estate rather than to the co-tenant. Survivorship is the JTWROS feature and does not apply here. A broker-dealer never takes ownership of customer assets; it freezes the account pending proper documentation.
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