How to Transfer California Real Property out of Deceased Parent’s Trust
Three documents are needed to transfer real property in California out of a deceased parent’s trust.
The vast majority of trusts in California call for the distribution of assets upon the death of Trusts. Three documents are needed for real property distributions out of a deceased parent’s trust.
The first document is an “Affidavit of Death of Trustee.” The second document is a deed. The third document is a “Claim for Reassessment Exclusion for Transfer between Parent and Child.”
Affidavit Death of Trustee
An “Affidavit Death of Trustee,” is a declaration under penalty of perjury by the successor trustee to the parent’s trust that the parent has died. The successor trustee also declares he or she is authorized under the terms of the trust to act for the trust. The affidavit is support by a certified copy of a certificate of death.
The affidavit is filed with the recorder in the county where the real property is located. The affidavit puts the world on notice the trustee of the trust has died and new trustee has stepped in to act for the trust. This is all the affidavit does.
A second document is needed to transfer ownership of real property out of the trust. This second document is known as a deed. This document may be also called a trust transfer deed. How the deed is referenced or titled as either a trust transfer deed or simply as a deed does not matter. What does matter is the deed transfers ownership from the trust to the children of the deceased parent.
Claim for Reassessment Exclusion for Transfer between Parent and Child
The third document is a “Claim for Reassessment Exclusion for Transfer between Parent and Child.” Any transfer of real property ownership in California is subject to a step-up in the property tax base to market value as of date of transfer. There are exclusions to the automatic step-up. One such exclusion is a transfer from parent to child.
To obtain the exclusion it must be filed with the assessor in the county where the real property is located. The exclusion if filed after the deed has been recorded because the claim must reference the recorded deed and the date the deed was recorded.
Three documents are needed for real property transfers from a deceased parent’s trust to children; an “Affidavit Death of Trustee,” a deed and a “Claim for Reassessment Exclusion for Transfer between Parent and Child.” The documents must be filed in order. The affidavit allows for the filing of the deed. The claim cannot be filed until the deed has been recorded.
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