Did California need a nominee lien after a deceased taxpayer's property was transferred following the recording of two existing state tax liens?

Plain-English summary

California legal staff concluded that the Board did not need to record a nominee lien because its two existing tax liens had attached to the property before the property was transferred.

The deceased taxpayer owed $15,514.45 in delinquent taxes. Board liens had been recorded on April 10 and June 6, 1996. A deed conveying the business property was later recorded on July 25, 1996, and the district office asked for a nominee lien so the Board's claims would not be overlooked in a future sale.

Staff said the existing liens already encumbered the property when the later transfer occurred. On that stated chronology, another nominee lien was unnecessary.

Common questions

Did the transfer remove the two existing liens?

No, according to the memorandum.

Why did the district office request a nominee lien?

To help ensure the Board's liens would not be overlooked if the property was sold.

Did staff approve that request?

No. Staff considered the earlier recorded liens sufficient.

Source

• Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
• Annotation page: https://cdtfa.ca.gov/lawguides/vol2/suta/170-0000-all.html
• Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/170-0015.pdf

Original ruling text

State of California

Board of Equalization
Legal Division-MIC: 82

Memorandum
170.0015
To :

Mr. W. W. Hamiel
Special Procedures

From :

Thomas J. Cooke
Tax Counsel

Subject:

Date:

February 27, 1997

Telephone: (916) 445-6496

CalNet 485-6496

Nominee Lien Request
J--- M. V--- dba G--Permit No. SR --- XX-XXXXXX

Gary Jugum has requested that I respond to your memorandum to him dated February 24, 1997 concerning the above taxpayer. In your memorandum, you state that J--- M. V--- owes the Board $15,514.45 in delinquent taxes. The taxpayer is deceased. The business property is encumbered by two Board liens recorded on April 10, 1996 and on June 6, 1996. The Ventura District Office has received information that a deed conveying the property was recorded on July 25, 1996. The District Office is requesting approval for the recording of a nominee lien to insure that the Board’s liens will not be overlooked in the event that the property is sold. We believe that the Board's liens which were recorded on April 10, 1996 and on June 6, 1996 had attached to the property at the time that the property was transferred on July 25, 1996. We do not believe that there is any need for the recording of a nominee lien in this situation. TJC/cmm cc:

Ventura District Administrator (AR)