Legal Question in Real Estate Law in California

Here is some possibly helpful information......I can't be more specific without an opportunity to interview you: First, there is no automatic re-appraisal of real estate in California when the transfer is parent-to-child, but each county has a different policy with regard to what the new owner has to do in order to claim the exemption, so I recommend talking to a clerk at the county recorder's office when recording the deed. Second, for income tax purposes, both Federal and California, property transferred by gift during the donor's lifetime retains its old "basis" and therefore the done (recipient) will usually have a larger capital-gains tax liability when he/she ultimately sells; on the other hand, if the property passes to the son/daughter by will or trust, it receives a "stepped-up basis," i.e., what it was worth at the time of death, so when the child re-sells it, the capital gains tax bite is generally a lot less, perhaps zero or possibly even a loss. Finally, there are the estate tax and gift tax, but there are large exemptions, so you probably don't need to be concerned with these unless there are million-dollar items lurking in addition to the $30K you mention. If the numbers involved get up into the several hundred thousand range, see a tax or estate-planning attorney. Also, with any transfer of real estate, I recommend getting professional (lawyer or realtor) assistance in drawing up and recording a deed.