Grace and Henry are unmarried co-owners of a duplex in Davenport, Iowa. They hold title as 'Grace and Henry, as joint tenants with right of survivorship.' Without Grace's knowledge, Henry executes and records a deed conveying his interest to himself as a tenant in common, then immediately re-deeds that same interest to his revocable living trust. Grace later discovers what Henry did. Which of the following best describes the current ownership status of the duplex under Iowa law?
Correct Answer
A) Henry's trust holds his former interest as a tenant in common with Grace, and the joint tenancy has been severed.
In Iowa, a joint tenant may sever a joint tenancy unilaterally by conveying his or her interest to a third party — or, under modern Iowa property law principles, by conveying to oneself as a tenant in common (a straw-man conveyance). The recording of a deed that manifests the intent to sever is effective to destroy the unity of title and time. Henry's self-conveyance to himself as tenant in common, followed by the conveyance to his revocable living trust, is legally effective to sever the joint tenancy. As a result, Henry's trust holds his former 50% interest as a tenant in common with Grace. Grace retains her 50% interest but no longer has a survivorship right as to Henry's share.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A leasehold estate grants the right to possess and use property for a defined period of time, without conferring ownership.
A life estate is a freehold estate that grants ownership rights for the duration of someone's life.
Real property is immovable land and anything permanently attached to it, while personal property (also called chattels) is movable.
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