Legal Question in Real Estate Law in California

Re: Which form when adding spouse to Grant Deed

If you are buying stationery-store blank forms, I would guess that #2 is better suited to your needs, but even #1 could be used.

There are several things to keep in mind here.

First, California now has a new way for married couples to hold title -- in addition to the familiar "community property" there is now "community property with a right of survivorship" (Family Code section 750). Property thus held passes 100% to the surviving spouse upon a spouse's death, as with joint tenancies. The couple should think about their plans and wishes as to heirs, i.e., do you have "my heirs" and "your heirs" or simply "our heirs" to plan for?

Second, make sure that the interest transferred is what you have in mind. If you carelessly deed the property from H to W (or W to H), instead of each having a half interest, a 100% interest will be given to the other. Instead, if Wife is the owner, the deed should say, in effect, "W grants [Property Description] to H and W as community property [with right of survivorship, if intended]."

Third, most deed forms have a space at the top to check a box or insert language to the effect that this is an interspousl transfer and/or is exempt from transfer taxes for various reasons. At the time of recording, if you do it yourself, ask the recorder's clerk if the tax-exempt interspousal nature of the deed is properly set forth to meet that county's requirements.

Fourth, be sure to ask a tax advisor whether this form of family planning is best overall for your family. In some cases, making a large gift while living is an inferior estate-planning idea in comparison with, say, an inter vivos trust. Inheriting property can be advantageous to receiving it as a gift.

The value of real estate is so high today that families should take every possible step to get a stepped-up basis rather than expose themselves to large capital gains or gift taxes. If you don't fully understand the long-range tax implications of a gift to a spouse, it's worth paying a few hundred bucks to a good local tax person who can interview both of your about the particulars of your situation.

Re: Which form when adding spouse to Grant Deed

do not do this yourself for the money you may save me come back to haunt you later in terms of taxes and attorneys fees when the problems you create come to a head --- get a good real estate/ estate planning attorney who also has some sembalance of family law knowledge and is a human being too -- do it yourself law usually means troubles in the future -- i have been do this for 30 years in the bay area and is you wish you may call me at 510-465-6000

Re: Which form when adding spouse to Grant Deed

Usually quit claim or grant.