2

Three siblings own property in Michigan as joint tenants with rights of survivorship. One person wants to sell their portion of the property to one of the remaining kids. Will that give that one person 2/3rds right and the other one 1/3 right or do the remaining two still own it 50/50??

closed as off-topic by Dheer, JoeTaxpayer Jun 8 '16 at 2:14

  • This question does not appear to be about Personal Finance within the scope defined in the help center.
If this question can be reworded to fit the rules in the help center, please edit the question.

  • Unless I am missing something, 2/3's. – Pete B. Jun 6 '16 at 19:51
  • 2
    @PeteB. I think you're missing something - "joint tenancy". First, the one sib can't sell without all other joint tenants agreeing. But, if all agree, the joint tenants as a group can quitclaim to the two remaining sibs as tenants in common with any distribution of shares (1/3 to 2/3; 50:50; 51:49 or other) that they agree to. – user662852 Jun 6 '16 at 21:50
  • 1
    I'm voting to close this question as off-topic because it's more of a legal question. – Dheer Jun 8 '16 at 1:01
6

This really is a legal matter rather than a money matter.

Each sibling doesn't "own" 1/3rd of the property; together, the three own entire property jointly, and if one or two siblings pass away, the survivor(s) own the property in its entirety. That is, a sibling cannot make a will leaving his or her "share" to his or her spouse or children etc.; that so-called share is automatically divided among the surviving tenants.

To do what you want, the three siblings must terminate the existing joint tenancy (requires the consent of all three joint tenants) and create a new tenancy in common with one sibling owning a 2/3rd share and one sibling owning a 1/3rd share and the third completely out of it. At that point, the sibling owning the 2/3rd share will pay the one getting out of it whatever cash value is agreed upon. There will be tax consequences depending on which country's (or state's) laws are applicable to the transaction.

Not the answer you're looking for? Browse other questions tagged or ask your own question.