Inherited Property: Do all owners have to hold title in the same way ?

[Inherited_Property]

Scenario:

3 people inherited real property in equal shares in a trust. The trust calls for distribution in equal shares to the 3 beneficiaries.

Question:

Do all the beneficiaries have to take title in the same manner ?

Note:

Looks like between tenancy in common & joint tenancy. It would make sense to have 2 people as tenancy in common and 1 person as joint tenancy.

 

[adjusterjack]

Do all the beneficiaries have to take title in the same manner ?

Beneficiaries don't "take" title. The trustee issues the deed conveying the property to the beneficiaries according to the terms of the trust.

If the trust says that the three beneficiaries share equally then the ownership has to be the same for all three.

What would "make sense" is irrelevant. It's the terms of the trust that count. If the trustee doesn't understand what his duty is, he/she should be consulting an attorney to make sure it gets done right.

 

[army judge]

Scenario:

3 people inherited real property in equal shares in a trust. The trust calls for distribution in equal shares to the 3 beneficiaries.

Question:

Do all the beneficiaries have to take title in the same manner ?

Note:

Looks like between tenancy in common & joint tenancy. It would make sense to have 2 people as tenancy in common and 1 person as joint tenancy.

You need to understand who, or what owns the assets held by a trust.
A beneficiary of a trust doesn't own anything.
A beneficiary of a trust might receive payouts from the trust (RARE), more often getting USE of said assets.

I suggest you take the documents conveying and supporting the trust to your attorney for a complete explanation of what you're getting into.

All that glitters isn't gold!!!

 

[Inherited_Property]

Thanks for the responses!

I was asking about title though ?

I appreciate attorneys, I really do. However I want to learn for myself so I can be prepared to speak with an attorney.

 

[adjusterjack]

Why do you need to learn this. Are you an heir to the property? The trustee of the trust?
Somebody else?

Anyway, it's easy to learn what each type of ownership entails. I'll save you the effort of googling:

California Tenants in Common vs. Joint Tenants

You have written:

The trust calls for distribution in equal shares to the 3 beneficiaries.

How that distribution occurs and how title is conveyed on the deed depends on EXACTLY the terms and conditions of the trust and I'll guarantee that there is more written into the trust documents than just that one sentence that you have written.

At least, I hope there is.

Care to quote the property distribution word for word?

 

[army judge]

Thanks for the responses!

I was asking about title though ?

I appreciate attorneys, I really do. However I want to learn for myself so I can be prepared to speak with an attorney.

Think about this.
How do you know I'm not lying to you?
How do you know anyone is telling you the truth?

That's why you want to HIRE your own lawyer.

No skin off my back if you don't hire a lawyer, and another beneficiary rips you off.

 

[Inherited_Property]

Anyway, it's easy to learn what each type of ownership entails. I'll save you the effort of googling:

Thank you for that. However, you may have missed my question. This was not what I was asking.

How that distribution occurs and how title is conveyed on the deed depends on EXACTLY the terms and conditions of the trust and I'll guarantee that there is more written into the trust documents than just that one sentence that you have written.

What do you think it says in there ?

Care to quote the property distribution word for word?

4.2 Gifts of Interest in Real Property. The real property located at XXXX Street, CA, shall be given in equal shares and free of trust to the beneficiaries. Should any of the beneficiaries fail to survive Joe Smith, then the share of that predeceased individual shall be distributed equally to the survivors of them.

This is all that is written.

 

[adjusterjack]

4.2 Gifts of Interest in Real Property. The real property located at XXXX Street, CA, shall be given in equal shares and free of trust to the beneficiaries. Should any of the beneficiaries fail to survive Joe Smith, then the share of that predeceased individual shall be distributed equally to the survivors of them.

Thank you.

That tells me that the property gets conveyed to the 3 three beneficiaries as Tenants in Common.

 

[Inherited_Property]

Thank you.

That tells me that the property gets conveyed to the 3 three beneficiaries as Tenants in Common.

What tells you that it is conveyed as tenants in common ?

 

[adjusterjack]

This:

Should any of the beneficiaries fail to survive Joe Smith, then the share of that predeceased individual shall be distributed equally to the survivors of them.

The trust contemplates that survivors of any of the beneficiaries inherit their shares and that's how Tenants in common works.

Joint tenants contemplate that the beneficiaries would inherit from each other if any of them dies.

Do the beneficiaries want each other to inherit their shares or do they want their own families to inherit their shares? Think about that.

I think that tenants in common is how the trust requires it but I suppose that if all the beneficiaries sign waivers they could have it as joint tenancy with right of survivorship.

 

[Inherited_Property]

The trust contemplates that survivors of any of the beneficiaries inherit their shares and that's how Tenants in common works.

Actually what that meant was that if any beneficiary died before the trustee (grandfather), then the remaining beneficiaries would get equal shares.

Do the beneficiaries want each other to inherit their shares or do they want their own families to inherit their shares? Think about that.

The beneficiaries want their own families to inherit.

 

[adjusterjack]

The beneficiaries want their own families to inherit.

Then the deed from the trust will be to the beneficiaries Manny, Moe, Jack as Tenants in Common.

 

[Inherited_Property]

Then the deed from the trust will be to the beneficiaries Manny, Moe, Jack as Tenants in Common.

That is what I was thinking too.

However it was mentioned that the trust dictates how title can be held. The wording is as I described. I assume it can or should be done this way ( Tenants in Common) per the trust.

I also wondered if title can be held differently among the 3 people.

One of the beneficiaries has no trust themselves and wants to leave interest to surviving tenants. That sounds like joint tenancy might be better for them as it avoids probate.

 

[adjusterjack]

It's either all three as tenants in common or all three as joint tenants.

if the beneficiaries can't agree (which is why it's a bad idea to leave property jointly to heirs) then the trustee has the right to sell the property and divide the cash.

You've gotten to the point where further discussion of the legal aspects on websites aren't going to help you decide how the property will be conveyed.

You're kind of asking the same question over and over both here and on the other site where you have asked the same question.

Time to get a lawyer to figure it out.

This thread is closed.