California Code of Regulations
Title 18 - Public Revenues
Division 2.5 - State Controller
Chapter 1 - Inheritance Tax
Article 4.3 - Joint Tenancies
Section 13671.1 - Examples of Joint Tenancy Between Three or More Persons
Current through Register 2024 Notice Reg. No. 12, March 22, 2024
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.
