Legal Question in Wills and Trusts in California

Yes, but it can get tricky in a number of ways. The issues include, but are not limited to, the following: You have to transfer an interest, 2% for example, and not a dollar amount. That interest needs to be supported by some evidence of its value - conprable sales, an appraisal, etc. If you decide to sell or refinance the house it could get complicated becuse of the multiple owners, especially if the deeds are directly to the child and not a trust for that child's benefit. Not recording the deeds could create other problems in connection with a sale or loan. You need to be very careful in order to avoid these, and other, unforseen consequences. It would be best to consult with an attorney before proceeding.

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The bid question is, "Why do you want to do this?" It has legal consequences as well as potential tax consequences. Usually, people who do these kinds of things are trying to circumvent som legality, such as taxes, and it more often than not costs more in the long run than what they are trying to save. There is probably a legitimate way to accomplish you goals.

You are taking a risk with the IRS if you don't record the incremental transfer. IRS can argue that you did not make the gift public, and since you can rip up the unrecorded deeds any time, that no gift was really made. So you need to consult a tax specialist to determine whether the IRS requires recording of gifts, and also an appraisal to determine how much was gifted.