Apple Tree wrote:Could anyone please help me with a real property question?
In property essay #116 (the second one of the first set), a JT transferred her interest to a third party, but the JT retained life estate interest and only gave the 3rdP a vested remainder interest. The answer says this transfer is valid (assuming it satisfies the deed requirements), but I thought JT interest vanishes at death and therefore cannot be devised. So when the JT who gave away her interests died, wouldn't her interests automatically pass onto the surviving JT instead of going to the 3rdP? Is it because she did this in an inter vivos gift so in effect the JT relationship was severed when she executed the deed (again, assuming it's valid)? If the deed is immediately delivered to the 3rdP upon execution, does it mean it is instantly valid even though the 3rdP can't obtain the interest upon the JT dying? I thought the deed only becomes valid when the 3rdP's interest vests.
Not sure if my questions make sense... My head hurts from studying...
When a JT transfers an interest, the transfer severs the JT for that interest. So if there are just two JTs to start with, it destroys the entire JT. If there are more than two, the people not involved in the transfer will still have a JT, but the person who sold/gave/transferred hers away will have turned her interest into a Tenancy in Common.
So, say Andy, Barney, and Goober have a JT. They each own 1/3. Now Andy gives his interest to Aunt Bee. She owns 1/3. Barney and Goober still have a JT between them, each still owning 1/3, but Aunt Bee's interest is a Tenancy in Common with them.
Instead, if Andy were to try to leave his share to Opie in his will, or for Opie to inherit via intestacy, that wouldn't work. As soon as Andy died, his interest would be split between Barney and Goober (who would then each own 1/2).
Think of joint tenancies as really delicate and easy to break. Tenancy in Common, on the other hand, is sturdy and it's what things default to when JT or Tenancy by the Entirety fall apart.