Legal Question in Wills and Trusts in California

There is almost no good reason in the world to transfer property from a parent to a child while the parent lives. It is HUGELY tax disadvantaged from a capital gains and estate tax perspective, it may trigger charges of fraudulent conveyance that will get both parent and child sued, it may trigger gift taxes the parent has to pay, and the look-back provisions for government benefits for seniors will usually result in the transfer being treated as if it had not happened for purposes of qualifying for benefits. But, hey, why pass up all that fun and excitement in favor of a simple inexpensive will or trust that would save tens or even hundreds of thousands of dollars? Seriously, though, it will be a disaster if your mother does that unless it is supervised by and receives the blessings of a very experienced estate planning attorney. I'm 99.9% sure, though, that any estate planning attorney will tell you not to do it, and will offer much better alternatives to achieve your mother's desired results.

A clarification of Mr. McCormick's response above - if the the real property is the residence of your mother, then it is considered exempt for Medi-Cal (California's Medicaid program) qualification and is not subject to the look-back provisions. If your mother is seeking to qualify for Medicaid in another state, then the transfer could effect your mother's eligibility for the program.

Regardless, Mr. McCormick is absolutely correct that your mother should speak with an attorney before transferring any assets to anyone.