Legal Question in Real Estate Law in California
gifting equity
Two part questions.
My wife and I want to give to her sister a portion of the
equity of a residential property that we own, but has
been her primary residence for 10 years. (There is a
first mortage, but considerable equity has been
accumulated) Question 1: Is a ''California Grant Deed''
the correct form to use? If not, which form would you
suggest. Question 2: Do we describe the gift as a
percentage of the propeerty, ie 10% -20%, etc., or do we
use a specific dollar figure that coincides with the
federal gifting limits?
2 Answers from Attorneys
Re: gifting equity
There are no federal gifting limits. You do not understand the gift and estate tax law. How you should do this depends upon a lot of issues. If this is worth doing, it is worth doing with the help of an estate planning attorney who can help you do this in context of a rational estate plan.
Re: gifting equity
While this may seem like a relatively simple thing to do, doing it incorrectly can end up costing you a substantial amount of money, not to mention headache. Your best bet is to make an appointment with an attorney who practices real estate law in your area and explain precisely what you are trying to accomplish. While you may have to spend a few hundred dollars to have an attorney complete the documents properly, it will, no doubt, save you hundreds, even thousands of dollas in the long run.
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