Quarter Interest

[dupre]

What is the name of your state?CA

I have a quarter interest in a house that my father gifted to his four siblings. Me being one of them. If it should unfortunately happen that I die before my dad does my quarter interest go to my wife/child automatically?

 

[Zigner]

What is the name of your state?CA

I have a quarter interest in a house that my father gifted to his four siblings. Me being one of them. If it should unfortunately happen that I die before my dad does my quarter interest go to my wife/child automatically?

Are you saying that you and 3 other people are on the deed as owners of the house, while your father is no longer on the deed?
If yes, then your interest in the property would be disposed of as would any other property (real or personal) that you own. You should do some estate planning.

 

[Taxing Matters]

If it should unfortunately happen that I die before my dad does my quarter interest go to my wife/child automatically?

No. Assuming your interest in the home is not community property then when you die one of two things will happen. If you co-own your interest in the home with one or more of the other owners as joint tenants with a right of survivorship (JTWROS) then your interest will pass to the other JTWROS owners at the moment of your death. Otherwise, your interest in the property will pass to your estate. Where it goes from your estate will depend on whether you have a will that directs where that interest goes or whether the interest will instead pass by intestate succession.

It'll be a bit more complicated if your interest in the house is community property.

If you want to be sure of who will get your interest in the house see an estate planning attorney for help.

 

[Litigator22]

. . .
It'll be a bit more complicated if your interest in the house is community property (?) . . .

Why would the OP's co-ownership of the home be characterized as community property when we are told that it was the subject of a parental gift?

I find nothing in the thread from which to infer that a transmutation occurred.

 

[Taxing Matters]

I find nothing in the thread from which to infer that a transmutation occurred.

There is no indication of that, but we also may not have all the facts. You will notice that I said IF the interest was community property, just accounting for the possibility. Surely you can't say that it is impossible that it might be community property, right?

 

[dupre]

After looking at the grant deed it says in the document

“the parties agree that the property subject to this deed is and has been the community property of the parties hereto, and that the property shall retain its character of community property”

 

[Zigner]

What is the name of your state?CA

I have a quarter interest in a house that my father gifted to his four siblings. Me being one of them. If it should unfortunately happen that I die before my dad does my quarter interest go to my wife/child automatically?

Are you saying that your dad's will (or trust) grants you and your 3 siblings 1/4 interest (each) in the property at the time of his death?

 

[dupre]

Are you saying that your dad's will (or trust) grants you and your 3 siblings 1/4 interest (each) in the property at the time of his death?

no. It is already gifted to us. A quarter per sibling. New grant deed has us four on it. He no longer has possession of property.

 

[Zigner]

no. It is already gifted to us. A quarter per sibling. New grant deed has us four on it. He no longer has possession of property.

Ok, so whether you die before your dad or not is irrelevant. He no longer owns the property, you (and your siblings) do.
Having said that, the wording you listed for the deed doesn't make sense and I suspect it is incomplete. If you were gifted 1/4 interest in the property and your 1/4 interest in the property is considered community property, then your wife becomes the sole owner the 1/4 interest upon your death. Your child gets nothing from it. This is, of course, assuming that your wife is alive (and still your wife) when you pass.

 

[FlyingRon]

Unfortunately, there's no concept of community property (no matter what the deed says) between unmarried people in California. This is at best jointly owned property. As pointed out, if the property has been deeded to the children, then whether dad lives or dies or not is irrelevant. As for when you die, it would have to be determined if such wording created survivorship rights. It could be that your siblings would get your share of the property, or it could be it goes to your heirs.

 

[Zigner]

Unfortunately, there's no concept of community property (no matter what the deed says) between unmarried people in California. This is at best jointly owned property. As pointed out, if the property has been deeded to the children, then whether dad lives or dies or not is irrelevant. As for when you die, it would have to be determined if such wording created survivorship rights. It could be that your siblings would get your share of the property, or it could be it goes to your heirs.

I think the portion of the deed that was quoted by the OP is incomplete.I suspect that each sibling took their 1/4 interest as community property with their respective spouses. So, assuming that each sibling is married, there are now 8 people with ownership interest in the property.

 

[FlyingRon]

That assertion only works if the spouses were explicitly named. Even then, there's no "community" interest between the four sets of married couples. Gifts are not generally community property, so any attempt to make the deed belong to the siblings' marital community woiuld need to be explicitly stated and the wording above wouldn't even come close to doing that.

 

[Zigner]

That assertion only works if the spouses were explicitly named. Even then, there's no "community" interest between the four sets of married couples. Gifts are not generally community property, so any attempt to make the deed belong to the siblings' marital community woiuld need to be explicitly stated and the wording above wouldn't even come close to doing that.

Fair enough -we just don't have the actual wording of the deed.

 

[Taxing Matters]

Gifts are not generally community property, so any attempt to make the deed belong to the siblings' marital community woiuld need to be explicitly stated and the wording above wouldn't even come close to doing that.

Not by itself, but we don't have the benefit of reading the whole thing. We'd need that to make sense of what the OP quoted.

 

[Litigator22]

After looking at the grant deed it says in the document

“the parties agree that the property subject to this deed is and has been the community property of the parties hereto, and that the property shall retain its character of community property”

Pardon me, but that language is preposterous, outright foolishness and totally devoid of legal significance! Who drafted it, a committee of diseased squirrels?

Not only does it irrationally imply that the same parties that are benefited by the deed as grantees already own the property, but ridiculously suggest that the subject property is co-owned by all the parties (grantor and grantees alike) and as their community property.

Also it is unfeasible for one member of a community property estate (here purportedly the father) to singularly convey full ownership of an asset of the community estate. It takes two to Tango so to speak!

Furthermore, if dad intended to gift co-ownership to his children to be held as their respective community properties and not as separate property, he would need to include in the granting clause the names of their respective spouses, if any!

In case you are unaware by California Family Code property gifted to one spouse is characterized as that spouse's sole and separate property; never as community. It can be transmuted from separate to community and can subsequently become subjected to a community interest or community lien, but otherwise the original classification remains unchanged.