Legal Question in Real Estate Law in Oregon

Right of Survivorship Deed for Real Property

My sister owns her house in Oregon as her sole property. She wishes to make sure that her home goes to her children after her death (two of them) with no tax burden or probate. I thought she should put them on her deed now as joint tennants, but someone up there has said that she needs a right of survivorship. Which is better, and what is a right of survivorship? Is joint tennacy Ok in oregon?


Asked on 10/11/00, 5:53 pm

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Right of Survivorship Deed for Real Property

I can only speak for California law, which doubtless differs from Oregon law in particulars, but here is some general advice.

With anything as valuable as a house, the cost of retaining a local attorney to do it right is very cheap insurance against the kind of do-it-yourself legal mistakes we lawyers have to fix, later on, at great bother and expense to clients.

Avoiding tax isn't that easy. The deal may turn a deferred estate tax liability into a current gift tax liability. Other things being equal, it is better to defer rather than accelerate payment of taxes.

Traditionally, a true joint tenancy always included the right of survivorship. Careless drafting of documents can result in creation of something other than a true joint tenancy, however.

Traditionally, a joint tenancy could only arise when all joint tenants acquired their interests at the same time, in the same way, and in equal shares. Obviously, if your sister already owns the house her interest cannot arise at the same time as that of her children 'placed on deed' at a later date. In modern times, this old rule has been relaxed quite a bit, but I can't tell you the state of the law in Oregon; you would have to inquire locally.

One of the ways used to create a joint tenancy including a person already an owner is to use a 'straw man' to take momentary title, then convey to the joint tenants-to-be in a follow-on transaction. All very complicated and perhaps a little risky.

Finally, the entire situation strongly suggests the need for comprehensive rather than piecemeal estate and tax planning by your sister. I recommend that she sit down with a highly-recommended (have her ask her friends and neighbors) estate and tax planning attorney, preferably someone who's been practicing in that field in her community for a long time and who is well established and highly regarded.

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Answered on 11/06/00, 12:44 am


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