Regarding a customer account held as tenants in common, which statement is accurate?

In a tenants in common arrangement, each party holds an individual share of the account's assets, and these shares do not necessarily have to be equal. One key aspect of tenants in common is that when one of the owners, or tenants, passes away, their share of the assets does not automatically transfer to the surviving owners; instead, it is governed by the deceased owner's will or state law regarding inheritance. This means that the ownership of the decedent's assets will follow the instructions laid out in their will or the relevant laws that dictate how assets are distributed when a person dies, which is why this statement is accurate.

Understanding this can help clarify the implications of account ownership in a tenants in common arrangement, particularly regarding asset distribution upon the death of an account holder, contrasting it with joint ownership forms such as joint tenancy where there are rights of survivorship.