Legal Question in Family Law in California
I'm a Chinese citizen married to a US citizen. My father plan to buy a property for me in california as a gift. How should I do to prove its a gift solely intended for me? should i put my name in the title and ask my father to wire all the money direct to the seller or have my father wire all the money to my account and then buy the house with the money? Do i need any other documents to ensure my sole ownership of the property?
2 Answers from Attorneys
First off, you should make the purchase through an escrow. Your father should be the buyer in the transaction and wire the funds into the escrow. He should then instruct the escrow holder to obtain and record the deed in your name. Ideally, your husband should also sign and the escrow holder should record a quitclaim deed to the property. Even though he doesn't own it, that will confirm he makes no claim to it.
There is also another issue that you haven't mentioned but you need to be concerned about going forward. If any of your or your husband's income during the marriage is used to fund anything to do with the property, there is a risk of creating a community property claim to a portion of the property. To avoid that, the financial management of the property must remain separate from your and your husband's general finances. You and your husband having separate bank accounts does NOT accomplish that. It is the source of the funds - from current income - that determines the character of the money as community property.
Lastly, there are significant tax complications involved in parents giving real property to their children while the parents are still alive, rather than by will or trust. I am not sure how the international aspects affect them, but it cannot simplify the situation. There are also SIGNIFICANT tax advantages to receiving full title to property out of a trust when your parents die, compared with receiving full title now.
For all these reasons, it may make a LOT more sense for your father to establish a trust and buy the property into the trust with you as the beneficiary, and with provisions for the trust to dissolve and the property to go to you when he dies. That will most likely save a lot of taxes between now and whenever the property is sold, and avoid any community property issues between you and your husband.
You are risking a great amount on free legal advice. this transaction should be done through a professional escrow agent. You also need to have a title insurance research the title. Your father can wire the money to you, BUT you need to open a special bank account for this transaction. Only the money from your father should be deposited in this account. A few hundred dollars my be needed to open the account. this money should be returned to the source of the money. Open the bank account in your name only, as a married person's separate property. Your best course of action would be to hire an attorney to assist you in the purchase oft this property.