Affiliate Broker Tennessee (TN PSI) National Practice Exam `

In a joint tenancy, if Skipper sells her interest to Midge before Ken's passing, how is the property interest divided after Ken's death?

1. All goes to Midge

2. Ken's estate receives half

3. Barbie owns two-thirds, and Midge owns one-third

4. All equally split among the owners

The correct answer is: Barbie owns two-thirds, and Midge owns one-third

In a joint tenancy, all owners have an equal interest in the property, and one of the key features of joint tenancy is the right of survivorship. This means that when one owner passes away, their interest in the property automatically transfers to the surviving owners, rather than being passed on to heirs or through a will. In this scenario, Skipper sells her interest in the property to Midge before Ken's passing. Therefore, at the time of Ken's death, the joint tenancy is no longer between Skipper, Ken, and Barbie, because Skipper has divested her interest. Instead, the ownership structure changes to reflect the new situation: Barbie retains her original interest, Ken retains his original interest, and Midge now holds the interest that was previously Skipper's. When Ken passes away, the property interests are now split based on the remaining interests. Barbie has her original one-third interest, Ken has his one-third interest, and Midge has the one-third interest she purchased from Skipper. Thus, after Ken's death, the property becomes owned by Barbie and Midge, with Barbie owning two-thirds (her original interest and what was Skipper's) and Midge owning one-third. This analysis supports that the correct answer reflects