Legal Question in Real Estate Law in California

It depends on how it is structured. If it is in a trust, in order to do a true buyout the property would have to be transferred out of the trust to the siblings and then the exiting siblings sell their shares to the remaining siblings. There are, however, most likely other options. What they are would require reviewing the trust documents.

As I understand it, the property is currently in a trust which has four beneficiaries, and one of the beneficiaries wants to be cashed out and the other three are willing to do this. Let me say first off, that I recommend at least some mimimal amount of legal advice in any dealings between a trust, the trustee(s) and the beneficiaries. Having said that, I'll further duck going on the line with a definite answer, and say that the question should be addressed to the attorney I'm advising you employ, or to the county assessor. While the Prop. 13 law and its somewhat liberalizing amendments do set up some situations under which property and interests in property can be passed between relatives (parent-child, for example) I'm somewhat doubtful this can be done between siblings. The assessor can give you the real scoop, for free, and with all the procedural steps that might be peculiar to your county. The laws, although statewide, seem to be administered a little differently (paperwork and such) from county to county. At worst, I'd guess that only the 1/4 interest being transferred would be subject to reappraisal - possibly nothing. Nevertheless, caution points to having an attorney at your side to answer such questions and to make sure the paperwork is properly drawn up and executed by the trustee and beneficiaries.

Prop 13 has nothing to do with it until the trust transfers title to the property, IF THEN. If the property is in trust, the trust is the sole owner, and subject to the rules and terms of the trust. Read it to see what your rights are under it. What you seem to be describing is some beneficiaries under the trust buying the interests of other beneficiaries. That is not the same as title transfer. You'll have to talk to a tax specialist to see how this specific trust will be affected.

If it were not in a trust, any owner on title can force a sale and Accounting through legal action.