Legal Question in Real Estate Law in California

Re: Grant Deed or QuitClaim

She should not do it. First, you will lose the benefit of a stepped up basis for tax purposes. Second, it will place her home at risk to your creditors. The better approach is to convey a life estate to herself and a remainder interest to you, or, why not have her set up a living trust and have her state in the trust document that the house will go to you after her death. If long term care planning is your concern the way to go is to set up a living trust and deed a life estate to her, remainder to you.

You can get all of this done for $400-500.

Re: Grant Deed or QuitClaim

Is this a primary residence? If so, there is a one time exemption for transfer tax and reassessment. There is also a lifetime $1M cap. The title company should be able to walk you through this. As far as the quitclaim v. grant deed question, a quitclaim grants only whatever title or interest the grantor has without any implied covenants concerning title or encumbrances. A Grant Deed implies covenants that the grantor has not conveyed the same property to anyone other than the grantee and that the property is free of encumbrances. If you have other questions, feel free to give me a call at 619.515.3234.

Re: Grant Deed or QuitClaim

I agree with Atty Roth. What is described is a qualified personal residence trust (QPRT). You can learn more about this as well as trusts in general on our website www.No-Probate.com.

A QPRT has many tax benefits as does a direct parent to child transfer.

Please feel free to review our site and contact me if you have any additional questions.