Also applies to tenants in the entirety

How Deed and Record can help.

Title search for how title is held and legal description

Prepare "quit claim deed" or "affidavit of death of joint tenant" with legal description for signature

(Quit claim deed to add a co-owner)

(Quit claim deed to remove co-owner who is living. Co-owner must sign quit claim deed.)

(Affidavit death of joint tenant for deceased co-owner)

Prepare transfer tax exemption report to keep the deed free of transfer tax and property tax increases

File and record the deed and exemption report with the Bureau of Conveyances

The process

Call 949-474-0961 or email Mark@DeedAndRecord.com. Information needed is; real property address, name of owners, address for receipt of property tax statements

Make payment 

We prepare documents. You are sent by mail or email the quit claim deed and claim for exemption from transfer tax.

Document is signed and returned to Mark Bidwell

Document is recorded and returned to you with recorder’s stamp and document identification number

Lifetime Gifts Compared to Post Death Transfers of California Real Property

An owner of real property in California can transfer ownership while living or after death. This post compares the tax consequences, control and Medi-Cal issues of both approaches.

In anticipation of death an owner of California real property can either gift while living the property or plan by Will or trust for the transfer to occur after death. This post explains the tax, control and Medi-Cal eligibility consequences of the two approaches.

In California property taxes are assessed at about one percent of the purchase price of the real property plus nominal annual increases. This is the property tax base. A gift while living will increase the property tax base to fair market value. Post death transfers delay the property tax base increase to the date of death.

There are exceptions to the property tax base increase such as spousal transfers and transfers between parents and children so the property tax increase for these transfers is not an issue. For all others, most likely, the property tax bill will increase. For all lifetime transfers the biggest problem is capital gains that results from application of the gift and estate tax.

A gift of real property is subject to the gift and estate tax. This is not an issue for most people as the exemption amount is over five million dollars and so no gift tax is assessed. But in the gift tax assessment process the purchase price of the original owner is transferred to the new owner. On the sale of the gifted property, a capital gains tax is assessed on the difference between the original purchase price and sales price.

Post death transfers are also subject to the gift and estate tax, but again this is not an issue for most people because the exemption is over five million dollars. The difference in post death transfers compared to lifetime transfers is the basis for capital gains tax becomes the fair market value as of date of death. Post death transfers of real property can avoid substantial capital gains tax compared to lifetime transfers.

An additional problem for a life time gift is Medi-Cal eligibility. The timing of the transfer may disqualify the owner for Medi-Cal because of the look back period for assets transfers. Regardless of taxes and Medi-Cal the biggest problem with lifetime transfers is the loss of control.

When a person gives away real property or a portion of the real property, he or she no longer has the ability to live in the house, sell the house or borrow money on the house without the new owner’s consent. Post death transfers do not relinquish control.

In planning for death, an owner of real property can either gift the property while living or plan for a post death transfer. Gift transfers relinquish control, may increase in property taxes, will in a future sale incur higher capital gains tax and may hinder Medi-Cal eligibility. Post death transfers such as Wills and trusts do not have these problems.