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Subject Topic: Joint Tenantcy (Topic Closed Topic Closed) Post ReplyPost New Topic
  
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ms500
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Posted: 29 Mar 2009 at 20:20 | IP Logged  

Astrid, Ben, and Carla own a farm as joint tenants with right of survivorship. Carla sells her interest in the farm to Diane. Shortly thereafter, Ben dies, leaving his entire estate to his son, Evan. The farm now is owned:

A-1/3 by Astrid and 1/3 by Evan as joint tenants with right of survivorship, and 1/3 by Diane as a tenant in common.

B-1/3 by Astrid, 1/3 by Diane, and 1/3 by Evan, as tenants in common.

C-1/2 by Astrid and 1/2 by Diane, as tenants in common.

D-2/3 by Astrid and 1/3 by Diane, as tenants in common.

Ans-D

Becker Final Exam -1 question

Given answer is D, but highlighted on B, Appreciate if some check above answer

Thanks

 



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neott
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Posted: 30 Mar 2009 at 01:49 | IP Logged  

D is correct due to the unique feature of joint tenancy: Right of Survivorship.

If a joint tenant dies, the remaining joint tenants receives the deceased person's ownership.  Once a joint tenancy is created, a joint tenant cannot change this in his will.  However, while that joint tenant is still alive, he can transfer/sell his interest without the consent of other joint tenants.  But upon transfer, he severs the right of survivorship as well. 

Therefore, in this case,  Carla sells her interest to Diane while she's alive.  Diane becomes a 1/3 tenant in common, she will not have right of survivorship.  Right of survivorship remains with Astrid and Ben.

Next, Ben dies with a will, trying to pass his interest to his son, Evan.  But no way, that's not allowed by joint tenancy.  Ben should have done that when he was alive.  As a result, lucky Astrid got 2/3 interest thanks to right of survivorship. 
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ms500
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Posted: 30 Mar 2009 at 05:40 | IP Logged  

Hi Neott

Thanks for clarifying above, now it is more clear

really appreciate

Thanks

 

 



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wantit
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Posted: 30 Mar 2009 at 13:15 | IP Logged  

  D is correct due to the unique feature of joint tenancy: Right of Survivorship.

If a joint tenant dies, the remaining joint tenants receives the deceased person's ownership.  Once a joint tenancy is created, a joint tenant cannot change this in his will.  However, while that joint tenant is still alive, he can transfer/sell his interest without the consent of other joint tenants.  But upon transfer, he severs the right of survivorship as well. 

Therefore, in this case,  Carla sells her interest to Diane while she's alive.  Diane becomes a 1/3 tenant in common, she will not have right of survivorship.  Right of survivorship remains with Astrid and Ben.

Next, Ben dies with a will, trying to pass his interest to his son, Evan.  But no way, that's not allowed by joint tenancy.  Ben should have done that when he was alive.  As a result, lucky Astrid got 2/3 interest thanks to right of survivorship.  
        

thanks for the great explaination

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neott
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Posted: 30 Mar 2009 at 21:05 | IP Logged  

You are welcome.
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