Legal Question in Wills and Trusts in California

Re: Transfer of home ownership

Th best way to convey the house to you normally is through a Living/Family (Intervivos) Trust (no probate). However, since you're not a blood relative you'll not qualify for the family deductions. So you may need to be financial prepared to pay some taxes. This may be starting at 37% up to 55%. The deed and placing yourself in joint tenancy (rights of survivor ship) would keep teh old lady from changing her mind when someone else cozies up to her. Here there's no probate. However, there's still some tax problems. And the best way to do it might be a trust that called a �Family Limited Partnership.' This is in which the old lady conveys $10,000.00 of the value of a limited partnership (in the house) to you each year (which is tax free). This might be actually $30,000.00 of real value since limited partnership shares are discounted. There would have to be provisions that upon her complete conveyance of the house she may stay in it. And also that the trust and yearly conveyances are 'irrevocable.' So in case of her eventual disability she is technically destitute, and doesn't have to sell her share of the property to pay her costs of the care she'll eventually require in a home or assisted living facility. Transfers out side of blood kin are discourage by the tax code. And some creative planning is necessary. And the ones I discussed above are not all the possibilities. The limited family partnership I believe requires two CPA evaluations of the worth of the limited partnership shares.

Re: Transfer of home ownership

If there are relatives the will can be contested and often is. Depending on her net worth, she should place it into a living trust, family limited partnership, or other trust (depending on individual circumstances). You as a non-relative could face many hurdles if only a will is involved. Depending on her age you should involve professionals because a person's capacity can be placed in question if they are very mature.

Re: Transfer of home ownership

Thanks for your posting. As you can tell from the answers you have received thus far, a trust, which you didn't mention in your original post, is one of the best ways to handle your situation.

Either way, your situation is going to raise natural suspicions with a court or with family members or even friends of your neighbor, so you should make sure that everything now is well documented.

Your mention of putting yourself on title is another way to accomplish this, but you will be taxed as a conveyance of a property interest as soon as you record your name on the title. I'm not sure that is the best way to go about this.

If you are interested in creating a will, a trust, both, or doing the property transfer through an attorney, please feel free to contact my office.