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Joint Tenants with the Right of Survivorship

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pinto375

Junior Member
What is the name of your state (only U.S. law)? PA

My mother and sister have an Indenture re: the family home as joint tenants with the right of survivorship and "not as tenants in common". My mother is listed as the "Grantor" and sister listed as the "Grantee". My mother is the only one who has been living in the home and has full title to the property. My sister recently passed away but is leaving behind some credit card debt. My question is about potential liens or judgements and the property. If unsettled, will my sisters credit card debt be attached to the property? Are there any other types debt that my sister may have that I should be concerned about being attached to the property? Thank you.
 


anteater

Senior Member
My mother and sister have an Indenture re: the family home as joint tenants with the right of survivorship and "not as tenants in common". My mother is listed as the "Grantor" and sister listed as the "Grantee". My mother is the only one who has been living in the home and has full title to the property.
This is confusing. What do you mean by an "indenture?" What do you mean by "full title to the property?" Can you clarify?

I am going to suggest that you contact a PA probate attorney. If your mother and sister did indeed own the property as joint tenants, the possible ability of creditors to "reach" the sister's interest is a complex legal area. I know that creditors can potentially reach jointly-owned personal property. I am less certain about real property.

The other problem is that, once again if your mother and sister did indeed own the property as joint tenants (and your sister was older than 21), PA Inheritance Tax would be owed on the value of the transfer of sister's interest in the property to Mother. Yes, I know that sucks. But PA takes joint ownership seriously when it comes to the inheritance tax. It is one of the seldom-considered drawbacks to using joint tenancy as a quick and dirty substitute for a will/probate.
 

pinto375

Junior Member
Mother and sister had an agreement titled Indenture whereby my sister would get the house for $1.00 if my mother died. My mother owns the house and it is not jointly owned. My sister would get the house if her mother died but my sister does not own anything. The clause states - joint tenants with the right of survivorship and "not as tenants in common".
 

anteater

Senior Member
Well, that's pretty bizarre. Whose idea was this "indenture?" Is this thing filed anywhere?

In any event, if your mother legally owns the property solely, then your sister's death has no effect on the property.
 
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FlyingRon

Senior Member
Mother and sister had an agreement titled Indenture whereby my sister would get the house for $1.00 if my mother died. My mother owns the house and it is not jointly owned. My sister would get the house if her mother died but my sister does not own anything. The clause states - joint tenants with the right of survivorship and "not as tenants in common".
What clause are we talking about? You're not making sense. I would recommend you take all the paper to a lawyer since we can't make heads or tails. If the contract is for a sale at Mom's death, why would it mention any form of co-tenancy (joint or otherwise). Further, depending on just how this grant was made, it may be worthless at the time of death. Further, such transfers are going to be subservient to more senior claims such as from a prior mortgage or medicaid obligation.

Transferring the house for $1 won't do anything by the way. Absent FMV they will consider this a gift.
 

justalayman

Senior Member
Mother and sister had an agreement titled Indenture whereby my sister would get the house for $1.00 if my mother died. My mother owns the house and it is not jointly owned. My sister would get the house if her mother died but my sister does not own anything. The clause states - joint tenants with the right of survivorship and "not as tenants in common".
you need to make up your mind. Either they are joint tenants (which is impossible based upon a previous statement) or there is a mechanism in place that would transfer the title to sister at mothers death. You can't have both.



the prior statement that precludes the possibility this is a joint tenancy would be this:

My mother is listed as the "Grantor" and sister listed as the "Grantee".
for their to be a co-ownership of any sort, both mother and sister would have to be listed as grantees. Beyond that, and I would have to check the current status of PA law but typically one cannot create a joint tenancy in the manner described as it frustrates one of the requirements of the 4 unities that must be present to create a joint tenancy. I haven't checked since the listing of the grantees on the deed makes it irrelevant.

So, if there is a mechanism in place that would transfer title to sister at mothers death, just what is it? You are suggesting a sale upon death being mandated by this "indenture". If a sale is directed, the estate is not free and clear from claims against mothers estate but must be first held as an asset to be divested as probate directs.

Since sister died first, if there is a deed in place that transferred title to sister, then mom does not own the property but sister does (as a single entity since the listing of the grantees as you have). That means the property is available to sisters creditors for claims. If mom is availing of the benefits of medicare, there may be a problem with the selling of the home for $1 though. Medicare would have essentially been cheated out of their security. The problem; they don't get cheated. They get to rescind the sale.
 
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anteater

Senior Member
A little late to this one, aren't ya', JAL? :D

But I really wish that the OP had posted back after running this by an attorney that could look at the actual documents.
 

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