Legal Question in Real Estate Law in California

Re: Deed Between Spouses

Your question raises a bunch more that need to be answered before it can be understood with clarity and without ambiguity.

First the question's caption "Deed Between Spouses" suggests that one spouse owns real property and wants to transfer an interest therein to the other spouse. But the body of your question suggests that YOU, not your mother or stepfather, currently own the property. Therefore, maybe this is a question about a title transfer between son and mother. So,

1. Who owns the property now?

2. Who will end up being the owners when the dust settles?

3. There are generally three parties to a trust: the trustor, the trustee, and the beneficiary. There can, to be sure, be more than one of each; and frequently, the same person serves in a multiple capacity. However, your question leaves uncertainty as to who will be trustor (or grantor), trustee and beneficiary here.

4. What kind of trust, and for what purpose? Most likely, a revocable living trust for estate-planning or similar purposes is intended, but it would be helpful to know so you get the right advice.

5. What is the reason for doing this deal? The number of possible bad reasons to share title within a family exceeds the number of valid reasons. The bad reasons include trying to avoid probate without considering capital gains taxes, and trying to avoid creditors without considering the scope and reach of the fraudulent transfer laws.

6. Is any money changing hands? Is it fair market value? If not, have you considered the gift tax?

7. Is the property "free and clear," or mortgaged? If the latter, do you need the lender's approval? Do you have it?

8. Will the deal trigger reassessment for property tax purposes?

9. Who lives on the property now? Who will live there after the deal is done?

10. "Do a grant deed" for what purpose? Do you mean as compared with a quitclaim deed? A transfer into trust?

If you would like a halfway trustworthy, useful and reliable answer, please contact me with this and any other relevant facts.