What happens to a tenant's undivided interest when one co-owner dies?

When a co-owner of a property dies, their undivided interest in that property typically passes according to the decedent's will or, if there is no valid will, according to the state's intestacy laws. This means that the deceased person's share is either distributed to the beneficiaries named in their will or, in the absence of such a document, to their heirs as determined by state laws of succession.

In the context of joint ownership, what distinguishes this scenario is that the rights of the surviving co-owners do not automatically dictate the fate of the deceased’s share. Instead, the legal arrangements made by the deceased in life, as well as state law, govern how that interest is handled after their passing. This ensures that the deceased’s wishes, articulated in their will, are honored, or that their heirs receive the property according to established legal systems.

Other choices imply different outcomes that do not accurately reflect the legal process guiding the transfer of property interests upon death, such as automatic dissolution or transfer to the state, which may misrepresent how property law operates in joint ownership situations.