Legal Question in Real Estate Law in California
Twenty one years ago a Joint Tenancy was established between a decedent and her son when he took out a loan for renovations to the property occupied by the decedent at the time. Ten years later the decedent established a living trust which apparently broke the Joint Tenancy and established a Tenancy in Common between the son and the trust. One year ago the decedent passed, and two months later the son learned of a stipulation in the will stating he was not a beneficiary unless he quit claimed his half of the property to the trust before the decedents death. The son solely paid the loan and the trust leased the property for the past twelve years with no proceeds provided to the son. Additionally, the decedent and her trust covered the property taxes over the twenty one year period. The trust is claiming the son is only entitled to a share equaling the value of the loan, and that he is also responsible for half of the property taxes over the period. The deed in Joint Tenancy recorded with the county twenty one years ago has no stipulations. Based on the deed and the stipulation in the will, what is the son�s percentage of the property? Given he has not occupied or received proceeds from leasing the property does he have an obligation to pay a percentage of the property taxes over the period?
3 Answers from Attorneys
I'd start by questioning whether the establishment of the living trust broke the joint tenancy. Was it recorded? Look at Civil Code section 683.2(c). Also, I have looked for statutes and case law as to whether one joint tenant's placing his or her joint-tenancy interest into a revocable trust is sufficient, ever, to sever the joint tenancy, and couldn't find an answer. I'll keep looking and if I find anything I'll post a second answer.
Second answer: Be cautious about any pre-1986 case law; it may be obsolete due to the adoption of CC 683.2(c) about that time. I'm still uncertain whether transfer of property to oneself as trustee of a revocable trust constitutes transfer to a "third party" as the statute requires in order to sever a joint tenancy.
I don't understand Mr. Whipple's difficulty. Conveyance by one joint tenant into a trust will sever a joint tenancy. It's clear from application of Civil Code section 683.2, subdivision (a)(2).
You state that a trust was set up. But the question that I have would be whether a deed was ever recorded by the decedent, prior to the decedent's death, that transferred the decedent's interest in the property into the trust?
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