California Code of Regulations
Title 18 - Public Revenues
Division 2.5 - State Controller
Chapter 2 - Gift Tax
Article 1 - Definitions
Section 15104.3 - Transfer of Separate Property into Joint Tenancy

Universal Citation: 18 CA Code of Regs 15104.3

Current through Register 2024 Notice Reg. No. 12, March 22, 2024

Unless otherwise indicated it is assumed in this regulation that the transfers were not made for an adequate and full consideration in money or money's worth.

(a) Joint Bank Account. If A with his own separate funds creates a joint bank or similar account for himself and B, there is a gift from A to B when the latter lawfully and rightfully withdraws sums from the account for his own purposes, to the extent of any and all amounts so withdrawn.

If A and B with their own separate and individual funds create a joint bank or similar account between them, any lawful and rightful withdrawal from the account by A or B in excess of his contribution will constitute a gift from the other at the time of such withdrawal.

(b) Joint U. S. Savings Bond. If A with his own separate funds purchases a United States savings bond in his name and the name of B, i.e., payable to A or B, there is a gift from A to B when the latter lawfully and rightfully surrenders the bond for cash for his own purposes.

If A and B with their own separate and individual funds purchase a United States savings bond in both names, i.e., payable to A or B, upon the lawful and rightful surrender of the bond for cash any amount received by A or B in excess of his contribution will constitute a gift from the other at the time of such cashing of the bond.

(c) Joint Tenancy Other Than Joint Bank Account or Joint U. S Savings Bond.

(1) Personal Property. If A with his own separate property creates a joint tenancy in personal property, other than a joint bank or similar account or a joint United States savings bond, in favor of himself and B there is a gift from A to B of one-half of the property at the time that the tenancy is created.

If A and B with their own separate and individual property create a joint tenancy in personal property, other than a joint bank or similar account or a joint United States savings bond, in favor of themselves, each makes a gift to the other of that portion of his contribution which exceeds his one-half equal interest in the tenancy.

(2) Real Property.
(A) If A with his own separate property creates a joint tenancy in real property in favor of himself and B, an individual who is not the spouse of A, there is a gift from A to B of one-half of the property at the time that the tenancy is created.

If A and B, two individuals who are not husband and wife, with their own separate property create a joint tenancy in real property in favor of themselves, each makes a gift to the other of that portion of his contribution which exceeds his one-half equal interest in the tenancy.

(B) If A with his own separate property created, prior to September 11, 1957, a joint tenancy in real property in favor of himself and his spouse, B, or if A and B, husband and wife, with their own separate property created, prior to September 11, 1957, a joint tenancy in real property in favor of themselves, the rules applicable regarding the making of a gift are the same as in subdivision (c)(2)(A) of this regulation.

(3) Joint Tenancy Real Property Between Husband and Wife Created on or After September 11, 1957 and Before January 1, 1981. For the rules applicable regarding the making of a gift by reason of the creation, on or after September 11, 1957, and before January 1, 1981, of a joint tenancy between husband and wife in real property, see Revenue and Taxation Code Section 15104.5, then in effect but subsequently repealed, effective January 1, 1981.

Note: As to the definition of "joint tenancy," see Section 15103.8.

As to the transfer of community property into joint tenancy, see Section 15104.2.

1. Amendment of subsection (c) filed 7-2-81; effective thirtieth day thereafter (Register 81, No. 27).

Note: Authority cited: Section 16506, Revenue and Taxation Code. Reference: Section 15104, Revenue and Taxation Code.

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