Legal Question in Real Estate Law in California

Re: Rental Liability

A person designated in your will or revocable trust as a prospective heir has no present interest in the property he or she stands to inherit; all they have is a "mere expectancy" because you, as owner, could sell the property or disinherit them at any time prior to your death. Having no present interest, your prospective heirs would have no personal liability for anything the uncle does, or fails to do, with or to the house.

This is not to say that their expectancy is unaffected by what the uncle might do. For example, if he neglects proper maintenance, the house might be in very poor condition when the grandkids inherit. This is a negative result, but obviously does not impose a personal liability on them.

Note that an heir is not obliged to accept any particular piece of property left to them. If there were, for example, toxic spills all over the property that would impose an expensive cleanup liability on the grandkids at the time of inheritance, they can avoid getting stuck with that liability by refusing the bequest.

My advice:

(1) Keep the place insured.

(2) Examine the reasoning or legal basis for the uncle's free ride. Maybe he is a life tenant; if so, he has some duty to keep the place in good shape and protect the interest of the remaindermen.

If the uncle is there as a matter of family charity, someone ought at least to make sure the deal is written down and that the owner has a right to make periodic inspections and insist that the uncle care for the place (if he is able). Undocumented "free ride" situations can cause trouble later on, including a claim of ownership by adverse possession.

(3) Make sure you pay the taxes.

(4) Make sure your intent that the grandchildren get the property is spelled out in a will, or better yet a revocable (living) trust, prepared by a competent wills-and-trusts attorney retained by and working for you. Do not give away the property during your lifetime, or put it in joint tenancy, unless advised to do so by an attorney working for you who has explained why this usually-wrong step is right for you.