Legal Question in Real Estate Law in California

Re: JTROS legal question

Deeds prepared by untrained persons sometimes have errors in choice of wording, property description, recording or otherwise, so the outcome is not always what the parties intended. Having said that, it looks to me as though the answers to your questions are:

(1) Mother and daughter are now both co-owners and both are joint tenants.

(2) Depending upon the value of the half interest gift, mother may be liable for some gift tax.

(3) Only the grantor (mother) needs to sign a deed.

(4) The deed is not effective until DELIVERED to the daughter. This can be actual delivery or constructive delivery such as giving it to daughter's husband, daughter's attorney, daughter's agent in other capacities, etc.

(5) The deed is NOT effective if never delivered during mother's lifetime, and becomes VOID upon mother's death if never delivered.

(6) People can be taken to court on slight pretext, but winning in court is another matter. The siblings are likely to lose if the deed is delivered and recorded before mother's death. Delivery is the key, but recording serves as notice to those without actual notice of the deed, and prevents otherwise-uninformed claimants from asserting rights as bona-fide purchasers (BFPs)without notice. Of course, the siblings are not BFPs, they are omitted heirs.

(7) Claims from omitted heirs are unsuccessful more often than not, but one useful protection against a contested estate is to have a will in which the omitted heirs are specifically mentioned by name, and token bequests are made to them. That shows their omission was not an oversight.

(8) The technique of passing ownership described here will, barring mistakes, accomplish transfer of the entire ownership of the house to daughter, but is not usually the best way. It avoids probate of the house, but does not avoid gift tax now or high capital-gains tax when daughter eventually sells the house. It's usually MUCH cheaper to pass property by living trust. If the deed hasn't been delivered yet, go see an estate-planning lawyer.

(9) Once the deed has been delivered, it has done its work, and the deal cannot be un-done even by tearing up the deed with the intent to un-do transfer of the interest. Of course, if no one ever found out..... Further, once it is recorded, its really too late to get rid of the tax consequences, just as you can't un-ring the bell.

Re: JTROS legal question

A properly drafted and recorded joint tenancy deed means the survivor [daughter] gets the property. The mother knew what she wanted and did the correct thing. The other relatives have no claim on the property unless the mother was 'incompetent' at the time and they want to contest the transfer on that basis.