Skip to main content

Certified Financial Planner (CFP) Practice Exam · Question

Sarah and David own their principal residence as joint tenants. If Sarah passes away, how will her share of the property be transferred?

In a joint tenancy arrangement, upon the death of one owner, their interest automatically passes to the surviving joint tenant(s) through the right of survivors

Start free practice for Certified Financial Planner (CFP) Practice Exam

444 questions · no signup required · 40 free questions per day

Start Practice →

Question: Sarah and David own their principal residence as joint tenants. If Sarah passes away, how will her share of the property be transferred?

Answer options: ✅ David will automatically become the sole owner due to the right of survivorship, bypassing her will and probate.

  • Her share will pass to her estate and be distributed according to her will, subject to probate.
  • The property will be sold, and the proceeds will be divided equally between David and Sarah's estate.
  • David will own 50% outright, and the remaining 50% will be transferred through Sarah's will after probate.

Correct answer: David will automatically become the sole owner due to the right of survivorship, bypassing her will and probate.

Explanation: In a joint tenancy arrangement, upon the death of one owner, their interest automatically passes to the surviving joint tenant(s) through the right of survivorship, which avoids the probate process and overrides any instructions in the deceased's will regarding that specific asset.

Start free practice for Certified Financial Planner (CFP) Practice Exam

444 questions · no signup required · 40 free questions per day

Start Practice →

More about Certified Financial Planner (CFP) Practice Exam

Related Questions

More for Certified Financial Planner (CFP) Practice Exam candidates

Ready to practice?

Free, no signup required. Build a wrong-question list as you go.

Start Free Certified Financial Planner (CFP) Practice Exam Practice →

Related courses

Other Canadian certifications candidates often prepare for alongside this one.