What type of property ownership passes to heirs upon the owner's death?

The correct type of property ownership that allows ownership to pass to heirs upon the owner's death is Tenancy in Common. In this form of ownership, each co-owner has an individual, undivided interest in the property, and there is no right of survivorship. This means that upon the death of one owner, their share of the property does not automatically go to the surviving co-owners; instead, it passes according to the deceased owner’s will or, if there is no will, according to the state’s intestacy laws. This characteristic of Tenancy in Common directly addresses the question about passing property to heirs.

In contrast, Joint Tenancy includes a right of survivorship, meaning that when one owner passes away, their share automatically goes to the surviving owner(s). Tenancy by the Entirety is similar to Joint Tenancy but specifically applies to married couples, also incorporating the right of survivorship. Life Estate grants ownership for the duration of an individual's lifetime, after which the property reverts back to the grantor or passes to a designated remainderman, and does not pass to heirs in the traditional sense.