HUNTINGTON BEACH, Calif. (PRWEB) April 19, 2018
After the death of the settlor, the successor trustee has a duty to take and keep control of and to preserve the trust property. Tip Sheet by Deed and Record explains how to meet this duty for real property located in California. For real property, the first step is to prepare and record an affidavit, death of trustee.
The affidavit is a declaration under oath. The successor trustee declares the owner of the real property has died and attaches a certified copy of the death certificate. The successor trustee further declares he or she is authorized to take control of the real estate property as provided in the trust.
The affidavit is filed with the county recorder. The affidavit then becomes public record that the successor trustee has control of the real property. Control is limited to what is directed by the trust. Most often the trust either directs the real property to be transferred directly to specified persons or the real property is to be sold and the sale proceeds divided among specified persons.
In either situation, the trustee will execute a deed. The deed transfers ownership of the real property out of the trust to either the buyer of the real property or the trust beneficiary. Real property transfers to a child of a deceased parent qualify for Proposition Thirteen’s parent-to-child property tax exclusion.
Good practice is to obtain an appraisal on the property as of date. The basis of the real property is increased to fair market value as of date of death. This is a known as a step-up in basis. Capital gains tax is on the difference between sale price and the date of death market value. An appraisal is needed for an account and for an audit by the I.R.S.
After the death of the settlor the successor trustee has a duty to take and keep control of and to preserve the trust property. For real property, the first step is to prepare and record an affidavit, death of trustee. The trustee can then sign a deed to transfers ownership out of the trust. Additional steps needed for real property are appraise and account.
This press release is provided by Mark W. Bidwell, an attorney licensed in California. Office is at 4952 Warner Avenue, Suite 235, Huntington Beach, CA 92649. Telephone number is 714-846-2888. Mr. Bidwell markets through a website http://www.DeedAndRecord.com.