Which type of ownership arrangement does not automatically pass an interest to the surviving owner upon death?

The type of ownership arrangement that does not automatically pass an interest to the surviving owner upon death is Tenancy in Common. In a Tenancy in Common arrangement, each owner holds an individual, undivided interest in the property. This means that each co-owner can sell, transfer, or bequeath their own interest as they see fit. When one owner dies, their interest in the property does not automatically pass to the other owners but instead is transferred to their heirs or beneficiaries according to their will or state law.

In contrast, Joint Tenancy features a right of survivorship, meaning that when one owner passes away, their share automatically transfers to the surviving owners. Estate by the Entireties is similar in that it involves a right of survivorship but is specifically for married couples. A Life Estate grants an interest in property for the duration of a person’s life, after which the interest passes to another party (the remainderman).

Thus, Tenancy in Common stands out because the ownership interests are distinct and not interdependent, allowing for separate ownership rights that do not facilitate automatic transmission of interest upon death.