Legal Question in Wills and Trusts in California

Re: sole joint tenant

I can't give you a definitive answer without getting a a question that is more clear in the facts. But, generally speaking, the only assets that are subject to the terms of the trust are those that are held in the name of the trust (technically this is done as property in the name of the Trustee subject to the terms of the trust.) Otherwise, the asset is not in the trust. If your aunt sold property naming you dad as sole joint tenant, then his signature would have been required to convey good title to the property to the buyer, and the proceeds of the sale would be half your dad's. If your aunt and your dad own property as joint tenants, upon your aunt's death that property would be owned soley by your dad, but only half of its value would receive a stepped up basis for tax purposes and the other half would have the same tax basis based on the purchase price. The deed you describe constituted a present gift or transfer of half the value of the house, not a transfer as a result of your aunt's death.

The type of planning in which your family is engaging is not recommended for many reasons.

You may want to suggest they read a book about the subject. I have written one in simple English that will soon be availabe on Amazon, called "Create Your Legacy & Save the American Middle Class - How you can Protect Your Loved Ones In the Event of Death or Disability (Without Paying an Attorney)

It's written in plain English to be understandable to nearly anyone.