Expert: Dick Dennis - 7/13/2011

Question
After our CA home was refinanced, our 12-year-old Joint Tenancy was severed by the mortgage lender. So, the original A and B (parents) (joint tenants)  and C D and E (single daughters) (joint tenants) became A and B (parents) (joint tenants) and C (daughter) (joint tenant) with D and E eliminated. The lender limited the number of loan applicants. I thought this was normal until we signed the Grant Deed.  I want my daughters to share equally without any hustle, just in case. Can I simply prepare another Grant Deed to replace the old one? How? Thank you.

Answer
Yes, you may, August, however, I would strongly recommend you talk to a good local estate attorney about putting together a Revocable Living Trust. Why? It's very simple and accomplishes what you are trying to do and income tax wise it is the best for you should anything happen to you. You and your wife would become the trustees and your daughters would become the trustees in succession. The title would be held in the name of the Yapching Family Trust (as an example) with the trustees (you and your wife) responsible for the mortgage just as you are now.

You may indeed make a new grant deed with the three of you conveying title to the five of you. But you may have a problem (and this may be the reason why the bank left off two of your daughters). In California, and most other states, minors (anyone under 18) may not convey title to anyone. They can hold title, but cannot convey title. So, the bank automatically left the two daughters off if they are less than 18-years-old.

If you go and talk with a good local estate attorney, the benefits will be explained to you in a simple half-hour meeting. You will find that the Revocable Living Trust fills your bill. I do wish you well.

Dick Dennis
CA Broker License 00349415
dixiedee13@aol.com