Legal Question in Real Estate Law in California

Re: Inherited real estate

While I agree completely with what Mr. Starrett says, an important element isn't mentioned:

Your husband's inheritance isn't community property, it is his own separate property, whether the holds it as a joint tenant or a tenant in common. If he and his sister sold the house and divided the net cash proceeds, his share of the cash would also be his separate property.

If you and your husband have a single living trust, all the assets in it are probably, but not necessarily, community in nature, and the instructions to successor trustees probably treat the assets as community property.

Your husband will need to decide whether to make a gift of this separate property to the community by allowing a transmutation to occur by placing it in a trust with community assets, whether to place it in a separate trust, or do nothing. He should discuss these issues with an estate planning attorney who understands family law and community property (as most will).

Re: Inherited real estate

What happens to his share of the residence will depend on how he holds title to the inherited house with his sister. If he is a joint tenant with her, then his share of the house will transfer to her upon his death if she survives him. If she predeceases him, then her share will transfer to him.

If he holds title as a tenant in common with his sister (or if she predeceases him as a joint tenant), then his share of the house will pass according to his pour over will, assuming he has one. Generally, estate planning attorneys will draft a "pour over will" for each spouse when preparing a revocable trust. The pour over will usually leaves all property not owned by the revocable trust to the trust upon the spouse's death. The pour over will must be admitted to probate to be effective. Then, your terms of the trust are likely to conrol who gets the house.

Even though the house may ultimately be put into the trust via the pour over will, it remains the separate property of your husband during his lifetime because it is inherited.

Of course, the best approach is for both you and your husband to consult with a knoweldgeable estate planning attorney to be sure your plan of distribution will work as you both expect.

Re: Inherited real estate

It will depend on how title is held in his half of the property. If it is still in his mother's name, it will need to go through a probate for her.

If it is 50% in his name, and 50% in the sisters name, it will depend if held as tenants in common or joint tenants. There are consequences for both.

You need someone to review the deeds.

Re: Inherited real estate

The answer to yoru question really depends on how your husband and his sister hold title to the property. If they are joint tenants and your husband dies before his sister, she gets it all. However, a qualified real estate attorney or estate planning attorney can help you change the title so that it is placed into your trust Your sister-in-law's consent is not necessary to make this happen.