Legal Question in Real Estate Law in California

Two brothers purchase an orchard together, joint tenancy with right of survivorship. The property is located in California. Brother 1 is not married and Brother 2 is married during the time of the purchase. After 7 years, Brother 1 gets married. In the event a brother passes away, how is the property distributed? JTWROS as I've read it, means that the other brother would receive the remaining 50% of the property; however, within a Community State such as California, would this change?


Asked on 2/26/14, 3:22 pm

4 Answers from Attorneys

William Christian Rodi Pollock

It probably does not change as a result of marriage. Since the property was owned before marriage it is likely the separate property of the decedent anyway. The probable result is a trasnfer to the surviving brother. This type of issue, however, is what makes lawyers wealthy. Why not prepare documents specifically addressing the problem and avoid leaving it for parties to dispute after a death occurs. Why not find out what the intention is. Is it to go to the brother or to the wife? Once you determine this, estate planning documents should be prepared to assure that result.

Be aware that there are income tax, estate tax and property tax issues to consider as well.

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Answered on 2/26/14, 3:40 pm
Anthony Roach Law Office of Anthony A. Roach

Is this a homework question? The fact that property was purchased during marriage is only a rebuttable presumption of community property as to Brother 1. That presumption can be rebutted by brother 1 tracing the source of funds to acquire the orchard from separate property. There are other issues here, but you are very weak on facts, such as whether brother 2 reduced an encumbrance with community property wages during his marriage, giving his community a pro tanto interest.

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Answered on 2/26/14, 4:09 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

If the orchard were owned "free and clear" so that no payments on a mortgage or deed of trust were made while the brother making the payment was married, without much doubt the surviving brother would become the 100% owner upon the other brother's death. If, however, any principal payments were made from community earnings (those of either spouse during marriage), then that marital community would acquire a small "pro-tanto" interest.

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Answered on 2/26/14, 4:12 pm
Terry A. Nelson Nelson & Lawless

How?

Exactly as you said, everything to the surviving title holder.

If this is homework, you need to go back and re-study the material, because you have an imperfect understanding of the very backs rules on the subject.

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Answered on 2/27/14, 11:03 am


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