Legal Question in Real Estate Law in California

I am a joint tenant with my mother for a condo in California. My mother has given power of attorney to my brother and he wants to quitclaim her share of the property to me. Are there any repercussions taxwise or otherwise. I have paid the entire mortgage and property tax since we bought the house. Would the quitclaim's validity be questioned if my mother (who is now in assisted living ran out of money--that is would they attempt to come after her former share of the property. By the way, I have lived in the condo since 1998 and will continue to live there.


Asked on 8/12/15, 2:25 pm

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

It is very difficult to advise someone you haven't interviewed in person that there will be no repercussions from a transaction of this kind. I would advise sitting down with a wills, trusts and estates specialist to discuss some possible issues or problems that could arise, although I think the probability is rather low (but not zero). First, you should be able to avoid reassessment of the condo for property-tax purposes, but I'd advise checking with the particular county's Recorder because the requirements for claiming the parent-child transfer exemption vary from county to county. Second, there might be an appreciable federal and state income-tax/estate-tax difference between taking your mother's interest as a gift now, versus succeeding to full ownership upon her eventual death. I do not think there is an issue with Medi-Cal seeking recovery based on the value of the transferred share in a possible future action. Finally, if your mother is still mentally competent and your brother is acting within the scope of a validly-granted power of attorney, I think the chance that "they" would or could attempt to come after her former share of the property is unlikely BUT very worth discussing beforehand with an expert who can quiz you about certain details and surrounding circumstances. Sorry to be somewhat inconclusive, but without full details I'd say this is 80% a good deal and 20% potentially troublesome.

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Answered on 8/13/15, 10:17 am


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