Legal Question in Real Estate Law in California

An 'inter vivos gift" is one made during a person's lifetime and not in contemplation of death. Except if the property is transferred by trust or Will, almost all other gifts are inter vivos. There is a limit on how much can be transferred per year without any tax effect [$15,000 per person]; upon change in ownership, the property is reassessed unless it falls within an exemption of spouse to spouse or child. California Tax Code section 11930, which does not control federal tax laws, states that there is no transfer tax if a complete gift is made [the giver gets nothing of monetary value from the gift]. It does not work for sales, etc.

There are other factors that must also be considered in "gifting" real property, such as the loss of the stepped up basis on death, re-assessments, transfer taxes, taxes on any income produced from the property, inability to get the property back, etc. Before you give any real property away, you need to speak to an attorney to figure out the best way under your circumstances and desires.

If you need, I can answer your detailed questions, but it would be at $125 per hour [actual time spent] [about 1/3rd of what other, more active attorneys charge -- I am semi -retired]. Or you could read some Nolo Press books on property transfers, taxes, etc.

Making a gift of real property is, 99% of the time, one of the most financially foolish things a person can do. There are all kinds of tax traps and other legal issues; more unintended consequences than in any person-to-person transaction I can think of. If it is done without review by an experienced real estate attorney with a good knowledge of real estate law AND income tax law AND estate taxation, it is 100% of the time one of the most foolish things a person can do.