Lawyer

Appellants, son, his wife, and grandsons, sought review of an order entered by the Superior Court of Orange County (California), which held that certain property purportedly owned by the deceased was joint tenancy property and, thus, not subject to testamentary disposition.

The deceased purchased a condominium and took joint tenancy with appellants, son and his wife. Appellant son's corporation thereafter defaulted on debts he had personally guaranteed to a supplier. Concurrent with the financial difficulties, appellants, son and his wife, executed a quitclaim deed to the deceased. The deceased's will left the condominium in trust for appellant grandsons. Second-Degree Murder in California is defined as the unlawful killing of a human being that is done without deliberation and premeditation, but with malice aforethought. Summary judgment was obtained by the supplier in federal court on a complaint alleging a fraudulent conveyance by appellant son. The supplier obtained an order that compelled the distribution of the condominium's sale proceeds. The court reversed that order, and the matter was remanded. The court held that the probate court had jurisdiction over the supplier's application to compel distribution, and also held that appellant grandsons were bound by the federal judgment because their interests in the condominium accrued through the estate, which was a party to that action. However, the court noted that the encumbrances of a co-tenant had no effect on other co-tenants. Thus, the deceased's interest in the condominium passed unencumbered to appellant grandsons, entitling them to one-half of the proceeds.

The court reversed the order, which held that property was not subject to testamentary disposition, because the deceased's ownership interest in a condominium was not affected by encumbrances placed upon the property by her co-tenants and could not be attached by their creditors. The matter was remanded to the superior court with directions to vacate its order and to enter a new order reflecting the deceased's one-half ownership interest.