Is it possible to transfer real property held in joint tenancy into a living Trust?

Get Legal Help Today

 Secured with SHA-256 Encryption

Is it possible to transfer real property held in joint tenancy into a living Trust?

If so, will this affect the WROS?

Asked on July 25, 2015 under Estate Planning, California

Answers:

M.H., Member, California Bar / M.H., Member, California Bar

Answered 6 years ago | Contributor

Yes, it's possible to transfer joint tenancy properties to a living trust. 
joint tenancy property only receives a half-stepped up basis for tax purposes. Whereas, property held as community property or community property with right of survivorship recieves a double stepped-up in basis.  Meaning, the surviving spouse could be subject to adverse capital gains tax if the property is held in joint tenancy, or no or little capital gains tax if the property is held as community property.   
Most real properties are held in trust as opposed to joint tenancy.  Joint tenancy can be problematic if you and the other joint tenant are rendered incapacitated or both or all die at the same time.  Joint tenancy ownership will not address these problems, but your trust probably will.   
I hope I answered your question.   


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption