Securities Industry Essentials (SIE) Diagnostics Practice Test

The correct answer, which identifies the type of account ownership that provides rights of survivorship among joint tenants, is "joint tenancy with rights of survivorship." In this form of ownership, if one joint tenant passes away, their interest in the property automatically transfers to the surviving joint tenants, rather than going through the deceased's estate. This characteristic ensures that the surviving joint tenants maintain uninterrupted ownership without the need for probate proceedings.

This form of ownership is particularly advantageous for joint owners who want to ensure that their share of the property is directly passed on to the remaining owners upon their death, simplifying the transfer process and avoiding potential delays associated with inheritance.

In contrast, other forms of ownership, such as tenancy in common, do not include rights of survivorship; instead, each tenant can transfer their interest to heirs or other parties, which can lead to complications when one owner dies. Limited liability companies and trust accounts serve different purposes altogether and do not specifically address survivorship rights in the same way as joint tenancy with rights of survivorship does.