Estate Planning Newsletter – May 2016

THE MANNER IN WHICH PROPERTY IS TITLED IS VERY IMPORTANT

In the case of Bryant v. Bryant, the issue came up as to the effect of how real property was titled and on a subsequent transfer by one of the co-owners.  In the Bryant case, Mrs. Bryant transferred property she owned to herself and her son as joint tenants with right of survivorship.  The Deed even referred to the conveyance being “for the purpose of creating a joint tenancy with right of survivorship.”  After that conveyance, Mrs. Bryant transferred her undivided interest in the property to her grandson.  The Quitclaim Deed to the grandson referred to the prior Deed to her son creating joint tenants with right of survivorship.

A couple of years later, Mrs. Bryant died.  A dispute arose between the son and the grandson as to each of their rights in the property.  In ruling in favor of the son, the Court of Appeals wrote that it should undertake to determine the intent of the Grantor.  The Court determined the intent to establish an estate by survivorship in the deed to the son was clear.  The Court wrote that a deed is to be construed to affect the intention of the Grantor.  The Court found that the intention of the Grantor was clear, as evidenced by the language she used in the two deeds, the first of which showed an intent to create a right of survivorship with the son, and the second deed to the grandson specifically referenced the first deed to the son creating a joint tenancy with right of survivorship.  The second deed to the grandson was to convey Mrs. Bryant’s survivorship interest should she outlive her son.  Because Mrs. Bryant did not outlive her son, at her death, the survivorship interest vested with the son and the grandson’s Deed was of no effect.

MY RECOMMENDATION:  The Bryant case dealt with a unique situation of a deed creating joint tenants with right of survivorship.  Apparently Mrs. Bryant did not understand the effect of the different deeds.  The form of ownership of property is quite important.  Whether real estate, bank accounts, brokerage accounts, or other assets, the form of ownership can control the disposition of the property at the death of one co-owner.  If in doubt about ownership and its effect on its disposition at the death of one owner, consult with legal counsel.

Yours very truly,

RAINEY, KIZER, REVIERE & BELL, P.L.C.

William C. Bell, Jr., Attorney at Law