Legal Question in Real Estate Law in California

Re: Joint Tenancy

First, you would sever the joint tenancy and you would become tenants-in-common. Then you would grant or quitclaim your interest in the property to a living trust. In most cases, a trust is superior to a will because you can avoid the cost and delay probate with a trust.

There is no such thing as a "joint trust with right of suvivorship". Regardless of how you hold title, a complete transfer of title to the property would require the consent of all the owners or a court order.

If you meant "joint tenancy with right of suvivorship", this means that the surviving joing tenants acquire your interest in the property upon your death. For the purposes of capital gains tax, it is better to inherit property from a trust than through joint tenancy.

Re: Joint Tenancy

No, you can't do this in the one-step manner you propose.

You would have to sever the joint tenancy first, by deeding your interest as a joint tenant to yourself as a tenant in common. The deed would have to be notarized and recorded. Your parents would then also be tenants in common with you.

I'm puzzled by your desire to do this - it seems to make sense only if there is a significant possibility your parents will outlive you.

Well, then the next steps would be to create the trust, then to place your interest as a tenant in common into the trust.

Property that passes by trust or will receives a stepped-up basis for tax purposes, so these are preferred methods for appreciated property vs. a joint tenancy.

While I've never heard the expression "joint trust with right of survivorship," trusts are very flexible vehicles and a perfectly legal and functional trust (by whatever name) could probably be drafted for you that would accomplish whatever goal you have in mind, so long as fraud of some kind isn't its purpose. Non-standard trusts require expert legal draftsmanship!

Remember that when two or more people have an interest in trust property, those people would be termed "beneficiaries" and not "tenants." Title would be held by the trustee(s), who might also be the beneficiaries, but they would hold as (co-)trustee(s), not as tenant(s).