Hanf

This case requires us to determine whether the requirements of California’s transmutation statute, Cal. Fam.Code § 852(a), must be met when realty is transferred from a third party to spouses as joint tenants. We affirm the decision of the Bankruptcy Appellate Panel (“BAP”), that the transmutation statute does not apply in such a circumstance, and that the property in issue is therefore held in joint tenancy rather than as community property.

7. BACKGROUND

During their marriage, Eugene and Ann Marie Summers, along with their daughter Aurora Summers, purchased a parcel of real estate with a $10,000 down payment. Eugene and Ann Marie used their savings as well as money from a personal injury award for the down payment. 1 The deed stated that the Summerses were acquiring the property as joint tenants. The deed specifically conveyed the property:

Eugene, Ann Marie, and Aurora eventually filed separate bankruptcy petitions. Ann Marie’s bankruptcy filing preceded Eugene’s. Richard Hanf, the trustee in Ann Marie’s bankruptcy case, contended that the subject property was a community asset and, therefore, became property of Ann Marie’s bankruptcy estate. After a trial, the…