Tip Sheet on How to Transfer California Real Property Out of a Deceased Parent’s Trust by Deed and Record

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This Tip Sheet by Deed and Record explains documentation a successor trustee needs to transfer real property in California from a deceased parent’s trust to the children of the deceased parent. Real property transfers from a deceased parent’s trust require an affidavit, a deed, a claim to be excluded from an increase in property tax and an appraisal.

Superior Court of California Probate Division

Mark W. Bidwell, attorney in Huntington Beach, California for successor trustees

Tip Sheet by Deed and Record explains how a successor trustee transfers California real property out a deceased parent’s trust to his or her children. Four documents the successor trustee must have prepared are; an “affidavit death of trustee”, a deed, a “Parent to Child Property Tax Reassessment Exclusion for California Property Tax” and an appraisal.

A parent creates a trust to avoid probate. Probate is the transfer of real property from a decedent to his or her heirs under the supervision of a Superior Court of California. Probate is costly, time consuming and open to the public. Real property owned by a trust with the deceased parent as trustee of the trust avoids probate.

The official government entity that tracts ownership of real property in California is the county recorder. To transfer ownership the county recorder requires a deed signed by the owner. To inform the recorder’s office the parent has died the successor trustee submits an affidavit death of trustee to the recorder’s office.

The affidavit is signed by the successor trustee who by oath or affirmation states the parent/trustee has died, the parent/trustee owned the real property in the trust and the successor trustee pursuant to the terms of the trust is the new trustee of the trust. The affidavit is supported with an original certificate of death.

Once the affidavit is filed with the county recorder the successor trustee can sign a deed to either sell the property or transfer ownership from the trust to the deceased parent’s children. Either change of ownership will cause the property tax assessor to increase the property tax base to fair market value.

Transfer of California real property from a parent to a child are exempt from the property tax base. To claim this exemption, the successor trustee must submit a “Parent to Child Property Tax Reassessment Exclusion for California Property Tax” with the county’s tax assessor.

In addition to reducing property tax the successor trustee can reduce capital gains tax when the real property is sold. Transfers of real property due to death receive a “step-up” in basis equal to the fair market value as of date of death. The new basis is established with an appraisal as of the parent’s date of death.

Documentation needed to transfer real property in California from a deceased parent’s trust to the children of the deceased parent are an affidavit death of trustee, a deed, a “Parent to Child Property Tax Reassessment Exclusion for California Property Tax” and an appraisal. The successor trustee has the responsibility to have these documents prepared and filed with the appropriate government entity.

This press release is provided by Mark W. Bidwell, an attorney licensed in California. Mr. Bidwell markets through the website deedandrecord.com. Office is located at 4952 Warner Avenue, Suite 235, Huntington Beach, CA 92649. Phone number is 714-846-2888.

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Mark Bidwell
Timeshare Lovers
since: 05/2016
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