Property held in joint tenancy by three or more persons is
subject to or excluded from the Inheritance Tax Law to the extent specified in
Revenue and Taxation Code Section 13671. This may be illustrated by the
following examples, in each of which it is assumed that any property
contributed by a surviving joint tenant never belonged individually to the
decedent:
EXAMPLE (1).
A, B, and C are joint tenants in property valued at
$100,000, all of which was contributed by A:
(A) If A dies first, the entire property will
be subject to the law at A's death. If thereafter the tenancy continues in
existence until the death of B or C, one-half of the property, or $50,000, will
be subject to the law at the date of the death.
(B) If B or C, or both, should predecease A,
none of the property will be subject to the law at B's or C's death.
(C) If B predeceases A and C, and A
predeceases C, the tenancy continuing in existence until A's death, none of the
property at B's death will be subject to the law, but all of it will be subject
thereto at A's death.
EXAMPLE (2).
A, B, and C are joint tenants in property valued at
$100,000, of which $50,000 was contributed by A, $25,000 by B, and $25,000 by
C:
(A) If A dies first, at his death
$50,000 will be subject to the law, and $50,000 will be excluded. If thereafter
the tenancy continues in existence until the death of B or C, at the date of
the death $50,000 will be subject to the law, and $50,000 will be
excluded.
(B) If B or C dies first,
at the date of the death $75,000 will be excluded from the law, and $25,000
will be subject thereto. If thereafter the tenancy continues in existence until
the death of the survivor of B or C, at the date of such death $37,500 will be
subject to the law, and $62,500 will be excluded.
(C) If B predeceases A and C, and A
predeceases C, the tenancy continuing in existence until A's death, at B's
death the property will be subject to or excluded from the law in accordance
with paragraph (B) of this example. At A's death $62,500 will be subject to the
law, and $37,500 will be excluded.
NOTE: Reference: Section 13671, Revenue and Taxation
Code.
