Legal Question in Wills and Trusts in California

Re: deed

I have to agree with Attorny Schomer. There are some potentially serious issues that can arise from doing this. If a smooth transfer to you at passing is what you are attempting, perhaps a trust is a better means. For starters, the tax benefits are tremendous.

Please take a moment to review the trust material provided on our firm's web site at www.No-Probate.com.

If you would like assistance, we would be happy to provide you with a free consultation.

If you still prefer to add yourself to title, just file a new grant deed with everyones names as joint tenants with rights of survivorship, marked as a gift, with your county recorder.

Scott

Re: deed

in addition to a deed, you will need to file a preliminary change of ownership report, and to avoid a property tax reassessment a parent child exclusion claim. if the value of the interest being transferred exceeds $11,000 (or $22,000 if from two parents), a federal gift tax return must be filed reporting the gift.

if the parents are still married use of a joint tenancy is not advised, as they will lose one half of the stepup in tax basis on first death which would be the case if their interest is held as community property. also in joint tenancy after first death the property will be owned 50/50 by the child and surviving parent (which may or may not be what is intended).

all in all, if this is being done for estate planning purposes, there are likely other methods of better accomplishing the goals of both the parents and the adult child.

Re: deed

Dangerous thing to do. Some of the problems include: any judgment against the child can be a lien on your house; can cause a number of tax problems; and without a written agreement, reversing the transaction may require a partition lawsuit. Consult an attorney who can understand your goals and suggest safer ways to accomplish them.