Legal Question in Real Estate Law in California

Re: transfer of property

Will first of all the reason that you want the money to go into the trust is probably so that you don't have to pay income tax on it. Wrong. No matter what happens like gas taxes are given. Therefore, just understand that you will be paying tax on it eventually. But you need an attorney to explain you the tax law's. You need an attorney to explain to you the estate planning laws. You need an attorney who can clear up to these questions, however simple they are on their face. By the way why would you want to give the beneficiary of your estate the proceeds from the sale if you aren't dead yet. Does that make you think that you again don't have to pay tax. Wrong, wrong. I have been practicing law in the San Francisco Bay area for over 30 years. You are not the first person who has actually thought they can beat Uncle Sam out of tax. Well, the most part they are wrong. There are ways a doing it so that ultimately the property will go to your beneficiaries and because of the tax laws maybe they will get out of paying the tax. Again you need an attorney took splayed all of this. If you wish to meet with me for a consultation I will be more than happy to do so. Please call me at 925 -- 945-6000.

Re: transfer of property

You didn't say what kind of a trust, or what you're trying to accomplish or avoid. This prevents giving a very useful or specific answer.

However, here are a few general principles:

Revocable trusts are nearly transparent as to tax effects, and using one is unlikely in most cases to have any effect on your (the trustor's) liability for income, capital gains, gift, inheritance etc. taxes.

Irrevocable trusts may sometimes provide a tax advantage, but the rules are many and complex, and of course when a trust is irrevocable, the trustor has given up control over the trust property.

Most of the acts you mention can be done only by the trustee, e.g. selling the property or directing how the sale proceeds are to be disbursed, if at all. Furthermore, the trustee must act within the authority given him/her by the trust documents. If you aren't the trustee and/or the trust is irrevocable, your hands may be tied.

Finally, use of a trust to place money or property beyond the reach of creditors can be fraudulent, is easily discovered by a sophisticated creditor, and could result in a lawsuit that would un-do the trust or the transfers and result in sale of the property for satisfaction of the debt.

Assuming you're just trying to do some legal and above-the-board tax or estate planning, I would say you need either to re-ask the question stating the type of trust, whether irrevocable or not, who is or are the trustee(s), and what was or is the purpose of the trust; or, better yet, go see a local trusts-and-estates lawyer.