In which ownership arrangement does an interest pass to surviving owners upon death?

The correct answer is Joint Tenancy. In a joint tenancy arrangement, multiple owners hold equal shares of the property, and one of the distinctive features of this ownership type is the right of survivorship. This means that if one owner passes away, their interest automatically passes to the remaining owners, rather than becoming part of the deceased owner's estate. This allows the surviving joint tenants to maintain full ownership of the property without the need for probate, simplifying the transfer process and ensuring that the property remains within the group of surviving owners.

In contrast, tenancy in common involves shared ownership without the right of survivorship. When a tenant in common dies, their share is passed according to their will or through intestate succession rather than directly to the other owners. Leasehold estate grants rights to use and occupy property for a specified term but does not confer ownership in the same manner as joint tenancy. Life estates grant ownership for the duration of an individual's life, after which the property reverts back to the original grantor or designated remainderman, rather than passing to surviving owners.