Legal Question in Real Estate Law in California
Joint Tenacy to LLC in Real Estate/Probate
My father recently passed away and I am his legal heir. My father and his brother owned a home together. They were joint tenants but changed to a family LLC. They each owned half of the house. The deed reads, ''For a valuable consideration, receipt of which is hereby acknowledged, anonymous and anonymous, as joint tenants hereby remises, releases, and quitclaims to the anonymous family limited liability company.'' What does this mean? Am I entitled to half of the house?
3 Answers from Attorneys
Re: Joint Tenacy to LLC in Real Estate/Probate
It depends. If your father and his brother had an operating agreement for the LLC, it probablly contains one or more provisions relating to disposition of the business' property upon the death of one of the members. That document, if it exists, may well determine who is entitled to the property.
From your description of the deed, it would appear that your father and his brother granted the property to the LLC, making it property of the LLC. Unless you are somehow entitled to your father's interest in the business, you wouldn't have any interst in the property transferred to the business.
Re: Joint Tenacy to LLC in Real Estate/Probate
This sounds like the LLC (which is considered a separate legal "Person") owns the property. An LLC is like a corporation in that people will have ownership interests in it.
The question then becomes "who owns the LLC?".
If you are your father's sole heir and your father owned 1/2 of the LLC sounds like that you would have an ownership interest. But, what happens to the house will depend upon the LLC. What are the terms of the LLC's Operating Agreement? Who are the other owners ("members") of the LLC and what position are they taking with the regard to the LLC property?
You should gather as much documentation as you can and probably have a sit down consultation with an attorney. There are too many unanswered questions at this point in time.
Caleb
Re: Joint Tenacy to LLC in Real Estate/Probate
From what you described, it sounds like the joint tenancy was terminated when they transfered the property to the LLC. However, you might be the heir to your father's interest in the LLC.
When you say that you are the legal heir, I presume that his will or living trust speciically states that you get everything. If he had a will or living trust, it might specify what was to happen to his interest in the LLC.
You will also need to speak with your uncle and get a copy of the operating agreement for the LLC. The operating agreement might specify what is to happen to the LLC upon the death of a member. Your uncle might be required to buy out your father's and they might have even provided insurance to accomplish this.
Make an appointment with a local estate planning attorney to review the pertinent documents to get some more specific advice.
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