Legal Question in Real Estate Law in California

Re: set up of living trust

In addition to Mr. Whipple's reply, yes you will be required to file a PCOR, but it should have no impact on property taxes. A transfer of an interest to a spouse is not considered a change of ownership, nor is transfer into a revocable trust.

Re: set up of living trust

The statement 'I filed a quitclaim on our home at purchase' doesn't give enough information. First, deeds are 'delivered' by the grantor(s) to the grantee(s); then, hopefully, they are 'recorded' with the county recorder. We don't ordinarily use the term 'file' in connection with deeds.

Further, you didn't say who the grantor and grantee are on this quitclaim. Do you mean that you and your husband acquired the property from the former owner via a quitclaim deed? Or do you mean that one of you quitclaimed to the other spouse as, for example, a means to get financing where the grantor spouse's credit was weak?

Neither one of these situations would be an obstacle to placing the property into a living trust of which both of you are co-trustees. However, the way in which title is now held, and the equities of the situation (such as whether the money that's in the house was separate property, community property, or some of both), will have an effect on both the mechanics (trust language) and the fairness of the transfer into trust.

Setting up a living trust is almost always the best way to handle estate planning and to transfer wealth from one generation to the next. It is also an area where you absolutely need to have an experienced trust attorney prepare the documents after carefully listening to both spouses explain their current circumstances and their future wishes.