A: The stated purpose of the TOD Deed, according to the author of the bill, is to allow seniors, low-income/fixed-income individuals, and individuals whose estates consist primarily of their home to avoid costly and/or complicated probates or trust administrations....
Title and Deeds
Q: What is a Revocable “TOD” Deed?
A: The Revocable “TOD” (“Transfer on Death”) Deed, introduced into law in 2016, was created as new probate-avoidance strategy available to Californians. Specifically, the Revocable TOD Deed allows individuals to transfer, effective only upon death and outside of...
Q: My sister and I would like to purchase a California investment property together, but she is able to invest more than I can. Can we own the property together in different percentages?
A: Yes, you can! In California, two individuals can take title to real property as tenants-in-common, and in whichever percentages the owners agree on. For example, your sister could own an 80% interest as a tenant-in-common while you own a 20% interest as a...
Q: Should I add my child to the title of my home?
A: Here are 7 reasons NOT to add your child to the title of your home: 1. CAPITAL GAINS TAXES. Your child will lose the full step-up in tax basis upon your passing, which could cost the child significantly in tax liabilities upon an eventual sale of the property. 2....
Q: Are there any downsides to adding my son to title right now as a joint tenant?
A: Yes, there are quite a few! Let’s assume you added your son as a 50/50 owner to your home: First, your son will only be able to receive a stepped-up tax basis on one-half of the property rather than a 100% stepped-up basis. Depending upon how long the property...
Q: Can I use the Transfer on Death Deed (“TOD Deed”) to transfer my 5-unit apartment complex to my son?
A: No. Unfortunately, despite its potential convenience benefits, the TOD Deed comes with numerous downsides. One of those downsides is that the TOD Deed can only be used to transfer the following types of California real estate: 1: a single-family home or condominium...
Q: What exactly is a life estate deed?
A: A life estate deed allows the recipient (the “life tenant”) to live on a given property for the rest of their life. The life estate deed must identify at least two separate parties: one who is the life tenant, and the other who is the “remainderman”, which is the...
Q: If my daughter is added to the deed to my house only for purposes of refinancing, will my goal of all of my children inheriting my house equally still be possible?
A: Not necessarily! Depending upon how the new deed is drafted, your daughter may legally own the ENTIRE home upon your passing and she may not be required to share with her siblings! Make sure to speak with a qualified estate attorney if you are in the process of...
Q: My wife and I purchased our rental in 1988, and we are on title as joint tenants. Should we change the way we hold title?
A: Yes! In fact, married California property owners have had a chance to hold title as Community Property with Right of Survivorship since 2001; it offers all the benefits of survivorship combined with the tremendous tax advantages associated with the “double step-up”...
Q: I have lived with my partner (we never got married) for over 25 years in the same house, but he’s the only one on title. Would I have rights to the house if he passes away?
A: Unfortunately not; California does not recognize common-law marriages between long-term, cohabitating partners. The only way for your partner to protect you in the event of his untimely death is for him to put together a well-designed estate plan. If you have any...