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My mother and father, my wife and I, bought a piece of property 7 years ago in California that is held in joint tenancy with all of us listed on the title. This property is the principle residence for all of us, with two houses on it. We have all contributed equally in terms of purchase cost, mortgage payments and property expenses.

I understand that when any of us pass away, title passes to the remaining owners. The rest of my parents estate is held in a living trust.

My question is this. Does the value of their portion of the property figure into their estate in terms of value for estate tax purposes? I had thought that since ownership passed to the remaining owners, that it would not be considered part of their estate, but now I'm questioning that. My concern is not when the first one of them passes away, but when the second one does.

Thanks for any info

smithsussane · Posted: Thu Dec 18, 2008 8:53 pm Post subject:

Hi bhorowitz!

Welcome to forums!

If you all own the property as joint tenants with right to survivorship, then after the death of both the parents, you and your wife will be inheriting the property directly without probate. If the property is owned by you all as only joint tenants, then the property will pass on to the heirs of your parents or to the person whom they have mentioned in their will.

As far as estate taxes are concerned, I don't think it will figure into their estate. I would suggest you to consult a tax adviser and get his/her opinion on this.

Feel free to ask if you have further queries.

Sussane

Guest

Thanks for your reply Sussane
My understanding is that in California, joint tenancy implies implies right of survivorship.
It was an estate attorney who mentioned to me that their portion would figure into their estate. That doesn't really make sense to me, especially when you look at a joint tenancy held by people not related to each other.

Bud

jerry · Posted: Fri Dec 19, 2008 4:38 am Post subject:

Hi bhorowitz,

As far as I can understand, as you are joint tenants, you will be inheriting the property and it will figure in your estate. However, you may have to give an inheritance tax on it. However, I am not a legal professional. I would rather suggest you to take the advice of another attorney in this regard.

Thanks,

Jerry

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