Tuesday, 19 August 2014

Is the joint tenancy in california real property maintained or severed when the joint tenants together transfer their property to a revocabl...

Question

Is the joint tenancy in california real property maintained or severed when the joint tenants together transfer their property to a revocable living trust?

California Civil Code 683

If it is claimed to be severed, why does the mere transfer to a trust sever the joint tenancy when no other instrument including leases, life estates, wills, mortgages, sales or any other type not sever the joint tenancy?



Answer

The joint tenancy is severed because the joint tenants no longer own the property. It is now owned by the trust. If it is a typical intervivos trust, the transfer is of almost no consequence to the rights of posession, occupancy, etc., but it is a change in the owner of fee title and that severs the joint tenancy. And you are mistaken that a sale would not sever the joint tenancy. A sale and a transfer to the trust are the same, a change in the owner of the fee simple estate. The other things you list do not change ownership of the fee simple estate (although a life estate might depending on how it was structured and granted).



Answer

Timothy is spot on- there has been a severance of the "unities" giving rise to the original joint tenancy.



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