Caution! Sever a Joint Tenancy Before Conveying the Interest to a Third Party

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As a graduation present, your client purchases her son a home. Although the plan was for the son to live there alone, the client and her son take title as joint tenants. Years later, your client remarries and asks you to convey her interest in the house to her new husband’s children on her death. What do you do? Whatever instrument you choose, be sure to sever the joint tenancy! Continue reading

Joint Tenancy Transfers in Trust May Avoid Reassessment—But Not For Much Longer

Updated 2/22/17. Another 5 years have passed and the State Board of Equalization (BOE) still has not eliminated the loophole that allows property owners to avoid reassessment on a joint tenancy transfer at death to a person not eligible for exclusion as a spouse, registered domestic partner, cotenant, parent, or child of the transferor. As amended in 2013, the regulations continue to provide that tenants-in-common can transfer property to themselves as joint tenants and become original transferors under Rev & T C §65. This means there will be no change in ownership on the subsequent death of a joint tenant. For example, siblings receiving property as tenants in common on the death of a parent may postpone reassessment until the death of the survivor by retaking title as joint tenants. See 18 Cal Code Regs §462.040(b)(1), Example 4; Letter to Assessors No. 2013/044 (Sept. 2013).

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