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

Current through Register 2024 Notice Reg. No. 28, July 12, 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				  extent of any and all amounts so withdrawn.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.