Legal Question in Wills and Trusts in California

Under California law, if the married child and spouse are California resident, the rule is that the gift to that child is the child's separate property. HOWEVER, under some circumstances, the separate property gift or anything it is used for may become community property. Examples include if the child receiving it deposits it to a community property bank account, co-mingles it with other community property of his/her marriage, buys something for the use of the entire family, or states in writing that he/she is changing it's character from separate to community property. If the child receiving the gift truly wishes the property to remain her/his separate property, careful attention must be paid to the terms of the couple's estate planning documents.

Does the couple already have a marital property agreement? This is not a do-it-yourself project. For any party who is concerned, I strongly recommend consulting with an estate planning attorney before the gift is made. Let us know if we can help.