Legal Question in Real Estate Law in California

A parent-to-child transfer can avoid reassessment for the city/county property tax if, at the time it is recorded, the recorder is notified that it is an exempt transaction. Inquire of the assessor's office BEFORE doing the deal so you both know exactly what they expect you to do.

However, there are state and federal taxes - gift and capital-gains - to be considered as well. Generally, the child is much better off to inherit (by will or in trust) than to receive as an inter vivos gift. There are infrequent exceptions, when the property has declined in value from the date the parent acquired it.

So, the answer to your question is no. The transfer of ownership of a house from parent to child has tax consequences, some of the greatest of which won't be felt until the child ultimately sells and must pay capital gains tax based on the appreciation from the date the parent acquired the property, way-back-when.