If one of the investors in a Tenancy in Common (TIC) arrangement passes away, their share of the property will be passed on to their designated beneficiaries according to their will or through intestate succession, if they did not have a will.
The beneficiary of the deceased investor will inherit their proportionate share in the TIC, which means they will receive a portion of the property based on the percentage of ownership that the deceased investor held.
The beneficiary may then choose to sell their inherited share of the property or become a new co-owner in the TIC arrangement with the remaining investors. It’s important to note that the other TIC investors do not have a say in who the new co-owner will be, as the decision is solely in the hands of the deceased investor’s beneficiaries.
In some cases, the TIC agreement may include provisions that address what happens in the event of a co-owners death. These provisions can include buyout options, restrictions on who can inherit the ownership interest, or the ability to force a sale of the property.