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Setting Ownership on a Custom Entity

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I am creating a new entity that will have an 1:N relationship with the Contact Entity.

Ownership for Contacts is set to "User or Team". My question is how should I choose to set the new entity ownership?

If I set it to "User or Team" what happens to the ownership of the related entity records when a contact is re-assigned?

Do the records in the related table automatically get re-assigned? For example user 1 is assigned ownership of contact 1 and creates records in the related entity. Later on Contact 1 gets re-assigned to user 2. Can user 2 see the records in the related entity for contact1? 

Would it be better to set ownership to organization?

Thank you in advance for taking time to reply.

Grlynn


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