Legal Question in Real Estate Law in California

Re: adding son to property title

Adding someone to title of real property is relatively simple...draw up, execute, deliver and have the grantee record a deed, which could be either a grant deed or quitclaim deed.

An escrow or title insurance company may be able to assist you with the paperwork, for a fee.

A deed is a very powerful instrument and they should be prepared by professionals and used only by grantors who understand the full ramifications of what they're doing.

For example, making a son or daughter a half owner as a joint tenant with right of survivorship is a common mistake when the purpose is avoiding probate. Sure, it can take the property out of the probate estate, but can and often does create huge gift and/or capital-gains tax problems. The best way to pass appreciated real property to heirs is by living trust (98.5% of the time).

I also advise not trying to give property at below-market value if the sole or primary purpose is to hide it from creditors such as MediCal.

If the property is financed, be sure to get written approval from the lender(s) or you could violate a term of the loan, such as a due-on-sale clause. Some lenders may want a small fee for waiving a restriction on sale or gift of their collateral.

Finally, if you go ahead with this, be sure the county property tax commector is informed (by notation at the top of the deed) that you are claiming an exemption from reappraisal because it is a gift to a descendant.

Re: adding son to property title

Don't do it. It's a mistake, and can be a big one.

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