Legal Question in Wills and Trusts in California

Re: estate

I am sorry to hear that your friend has passed away.

Did your friend have a Will stating that he left you his house? If so, the original Will will need to be probated through the court and title was pass by court order through this process.

If your friend left his house to you in a Trust, the successor trustee will need begin the trust administration process. This usually does not need court involvement.

Whether estate taxes are owed depends on the value of the total estate. If he died in 2006 or 2007 the exemption amount for estate taxes is $2 million. There may be other tax issues as well including your friend's final income tax returns, property taxes and capital gain taxes if the title of the home transfers to you.

Lots of issues. Please consider retaining an attorney to handle your friend's estate administration.

I hope this helps.

Re: estate

The answer depends on how the house was left to you--if by will, a probate is needed through the court. If your name was added to the deed, some minimal paperwork is needed. If by trust, trust administration outside of court is needed. A review of any will, trust and/or deed will give the answer.

As for taxes, estate taxes would be owed only if the net estate value was over $2,000,000. If not, no return is required and no taxes should be owed, unless your friend had made large gifts (over $10,000 to any one person in any year) during his lifetime.

Property taxes will likely increase, though.

I'd recommend meeting with an attorney to see what you need to do, and when--the first visit should not cost you anything and you should get an estimate for what needed items will cost.

One more thing--because California recently enacted laws with stricter requirements for gifts to "caretakers", an attorney review would be highly beneficial to making sure this gift to you is secure.