Legal Question in Real Estate Law in California

Without seeing the form you have, I can't say what would be the best way to deal with the problem. Quite frankly, though, chances are you really do not want to record that deed. Your mother's reason for giving you the deed was probably a big mistake unless the house has millions in equity in it. This year there is NO inheritance tax, although Congress is considering legislation that would reinstate it. Even when there is an inheritance tax, historically anywhere from $750,000 to well over $1 million in estate assets have been exempt. What is NOT exempt, is the gift tax. Any gift over $13,000.00 in any one year subjects the GIVER (your mom) to tax. On top of that, if you inherit the house, whenever you sell it you will only pay capital gains tax on the difference between the value at the date you inherit and the value you sell it at. If you take a deed while your mother is alive, when you go to sell, you will pay capital gains tax on the difference between the price SHE paid however long ago, and the price you sell it for. At 25% combined state and Federal tax on capital gains, that can be a LOT of money. Bottom line: you need to sit down with an attorney and go over the options and tax ramifications. If your mother has a will, and leaves it to you, you may be far better off doing nothing about the house at this time.

You are in a kind of awkward position respecting Mr. McCormick's advice, because the deed, even if not recorded, is probably valid as between your mother and yourself, and any others who know about it, and tearing it up or burning it will not un-do it. This makes following his advice at this stage of the game a little like trying to un-ring the bell. Too bad you did this in the first place. I don't know what to advise you.

On another issue, I don't know why the county recorder refused to accept the "form" you offered for recording. Items presented for recording don't, to my knowledge, have to be on any particular kind of form, nor do they have to be on a form at all. As far as I know, recorders must record entirely handwritten deeds. The only requirements I know of are that they must be highly legible, notarized, and must deal with a subject appropriate for entry in the permanent public records (such as deeds, mortgages, etc.).