Two Oregon joint tenants, Anne and Beth, own a property together. Anne secretly executes and records a deed conveying her interest to a trust she controls, with herself as trustee, intending to sever the joint tenancy. Anne then dies, and Beth claims the entire property by right of survivorship, arguing the deed to the trust was invalid. The trust argues the severance was effective. Under Oregon law, which outcome is most likely correct?
Correct Answer
D) The trust owns Anne's former interest because ORS 93.180 permits severance by conveyance, including to a trust, and Beth's survivorship right was extinguished at the time of the deed.
Under ORS 93.180(3), a joint tenant may sever a joint tenancy by executing and recording a deed conveying their interest — including to a trust they control. Oregon's statute does not require the grantee to be a third party unrelated to the grantor. Once Anne executed and recorded the deed conveying her interest to the trust, the joint tenancy was severed at that moment. Beth's right of survivorship was extinguished at the time of the recorded severance deed, not at Anne's death. The trust holds Anne's former interest as a tenant in common with Beth.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Community property is a system where property acquired during a marriage is owned equally by both spouses.
A freehold estate represents ownership of real property with an indefinite duration.
Joint tenancy is a form of co-ownership in which two or more persons hold equal, undivided interests in property with the right of survivorship. When one joint tenant dies, their interest automatically passes to the surviving joint tenants.
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