In the realm of real estate investments, particularly when dealing with Tenants in Common (TIC) arrangements, the term devisee holds significant importance. A devisee is a person or entity that is specifically named in a will to inherit real estate property. This term is most commonly used in the context of estate planning and inheritance law, where individuals outline their wishes for the distribution of their assets after their death.
In a TIC arrangement, multiple individuals or entities co-own a piece of real estate. Each co-owner holds an undivided interest in the property, meaning they have a share in the entire property rather than owning a specific portion of it. Importantly, the ownership shares in a TIC can vary in size and are not required to be equal among the co-owners. One of the defining features of TIC is that each co-owner’s interest is considered separate and distinct from the others, which allows them to freely sell, transfer, or bequeath their share of the property.
When one of the co-owners in a TIC passes away, their share of the property does not automatically go to the other co-owners, as it would in a joint tenancy arrangement. Instead, the deceased co-owner’s interest in the property is passed on according to the terms of their will. The person or entity designated in the will to inherit this interest is known as the devisee.
For example, if a co-owner in a TIC arrangement has a will that specifies their spouse or child as the devisee, upon their death, the spouse or child would inherit that co-owner’s share of the property. This means the devisee would step into the shoes of the deceased co-owner, becoming a new co-owner along with the surviving TIC participants. The devisee would then hold all the rights and responsibilities associated with that share of the property, including the right to participate in decisions related to the property and the obligation to contribute to its maintenance and expenses.