[WSBAPT] Joint Tenants with Rights of Survivorship

Mon Nov 30 15:00:43 PST 2020

John, I always appreciate your insights, as title counsel on these issues.

However, in this case it appears that the Grantors are the two parties that
intended the grandchild to benefit from the JTWROS. Both Grantors signed,
both Grantors have died and it is only the party that benefitted from the
Deed that has not signed. I could see where the title companies might object
if it was the grandchild that died, with the Grandparents asserting that
they take the interest of the non-signing grandchild.
Title company appears to be forcing a probate where none is required, simply
as a matter of addressing a very low underwriting risk. Are the heirs under
the LWT (or at law, if no LWT) really going to file a lawsuit claiming an
interest in the RP based on presumption of TIC in the face of a deed that
recites ownership as JTWROS?

If there are other persons named under the LWT (or at law, if no LWT), it
would seem that QCDs from them would dispose of the issue.
If the deed was drafted by counsel, an affidavit regarding the Grantors'
understanding and intention of JTWROS might also provide the added support
for the title underwriter.

Even if the "easiest solution" is a quickie Probate, if the LWT does not
leave this property to the Grandchild, then that implicates a TEDRA
agreement with the heirs that benefit  from the LWT. Thus, the simple
solution becomes more complex. And, Heaven forbid, a Quiet Title would also
solve this, perhaps for less $$$ than a probate, although that would take
longer and could kill the sale.

I would go back to the title company and ask to have a chat with the
underwriting counsel about the relative risk of insuring this transaction
using the analysis from above; failing that, shopping other title companies.

Michael A. Winslow
1204 Cleveland Ave.
Mount Vernon, WA 98273
Ph. 360-336-3321
Em. Mike at winslegal.com

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From: wsbapt-bounces at lists.wsbarppt.com
[mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of John McCrady
Sent: Monday, November 30, 2020 1:42 PM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] Joint Tenants with Rights of Survivorship

Most, if not all, title companies want the grantee in a joint tenancy deed
to acknowledge that the grantees intend to take title "as joint tenants with
rights of survivorship and not as tenants in common."  This is because of
the strong presumption that the grantees in any deed will hold title as a
tenancy in common.  One exception to that policy is if the grantors and the
grantees in the deed are identical, in which case the grantees are by
implication making the representation that title is to be held in a joint
tenancy with rights of survivorship.

John McCrady
Counsel
Puget Sound Title Company
5350 Orchard Street West
University Place WA 98467
253-476-5721
j.mccrady at pstitle.com
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From: wsbapt-bounces at lists.wsbarppt.com
[mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Inge Fordham
Sent: Monday, November 30, 2020 12:34 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Joint Tenants with Rights of Survivorship

Colleagues,

I have a situation where two grandparents and a granddaughter held title to
real property as joint tenants with rights of survivorship.  My position is
that when Grandmother passed some time ago, title vested in the survivors
(Grandfather and Client) as a matter of law.  Similarly, when Grandfather
recently passed, title vested in Client as a matter of law.  The Client now
owns the property outright as her separate property.  This is a non-probate
asset.

The property is now being sold and the title company is asking Client to
sign a deed as Client (in her own capacity for her share), as the PR of the
Estate of Grandfather (for Grandfather's share), and as the heir of
Grandmother (for Grandmother's share).  I do not believe this is
appropriate.  Title is refusing to insure the transaction because title
claims the operative quitclaim deed in which Grandmother, Grandfather, and
Client became joint tenants with rights of survivorship was not also signed
by the Grantee (my Client).  The title company asserts that the Grantee was
required to sign acknowledging the status of joint tenancy with a right of
survivorship.  I have never heard of this.  

Has anyone else run into this issue?  I do not want to create an argument
that the property is an estate asset where it is not.

Thank you,

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aR29EbHlRWHFseFV5STZpSUVGeUNPWldkVDFVPQ
Inge A. Fordham | Attorney
Fordham Law, PLLC
3218 Sixth Avenue | Tacoma, WA 98406
Office: (253) 348-2657 | Mobile: (206) 778-3131
www.fordhamlegal.com
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