Legal Question in Real Estate Law in California

Re: Change real estate title name

Technically, no; transferring a share of title can be done by non-lawyers pretty much as non-electricians can replace an electric outlet or wall switch. In both situations, a little knowledge is necessary and the risks of a mistake are large.

On the other hand, the entire subject of transferring property between family members, especially where it is done without payment of fair market value, is a minefield. Free or below-market transfers to avoid creditors or potential creditors such as Medi-Cal run a high risk of being deemed fraudulent, and are subject to being set aside by the courts.

Further, even when there is no fraud, such transfers have large potential tax consequences.

Therefore, your parents should not take any such steps without consulting a lawyer, retained by them, to advise on (a) whether the proposed transfer would be fraudulent under the Uniform Fraudulent Transfer Act (Civil Code sections 3439 to 3439.12) and (b) possible impacts on the parents' gift, property and capital gains taxes, now and in the future on their heirs' tax liability.

I am particularly concerned about the UFTA risk, as I know Medi-Cal is constantly looking for ways to recover money or assets hidden from it by such intra-family transfers.