Legal Question in Wills and Trusts in California
My unmarried son put his Los Angeles home in a revocable living trust. He died May, 2014. I am the successor trustee. He left the equity in the house to his friend via terms of the trust. The friend is getting new financing for the property. To qualify for exemption from Transfer Tax, in the �NOTICE OF EXEMPT TRANSACTIONS UNDER THE DOCUMENTARY TRANSFER TAX� form, should I choose: �This conveyance transfers an interest into or out of a Living Trust, R & T 11930.� or �This is a bone-fide gift and the grant received nothing in return, R & T 11911.� ?
1 Answer from Attorneys
�This is a bonafide gift and the grantor received nothing in return, R & T 11911.�
The first exception applied when your son transferred the property to the trust, and would have applied if he ever removed it.
The first thing to understand about Documentary Transfer Tax is that each county sets its own rules (within State law guidelines) and has different language for DTT exemptions and sometimes DTT Affidavit forms that are submitted to the Recorder with each deed instead of relying on a DTT statement on the face of the deed.
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