My parents want to give my wife and myself their home, which form do i need quit claim or grant deed, this is for los angeles county?
My parents want to give my wife and myself their home, which form do i need quit claim or grant deed, this is for los angeles county?
they need to complete the grant deed and preliminary change of ownership form. Both the forms are available online on title company’s website for free. Grant deed needs to be notarized.
Madan Ahluwalia
Ahluwalia Law P C
303 Twin Dolphin Drive Suite 600
Redwood City, CA 94065
Either one works fine, the differences are subtle and probably have no meaning in your situation. HOWEVER, there may be very serious adverse tax, estate planning, and other financial consequences of the transaction you propose, regardless of the form of deed you use. A gift from your parents to you and your wife, instead of just to you, would trigger all kinds of tax consequences. Even a transfer just to you would be potentially subject to gift tax. If it is not subject to gift tax, that would mean there is very little equity in it, which would mean there is a mortgage. The transfer would probably be a default on the mortgage and could trigger a foreclosure. There are a LOT of problems with this kind of gift. I cannot emphasize strongly enough the need to consult with a CPA at a minimum, and preferably a CPA AND an attorney who knows estate planning and taxation, before you do this. The taxes now and in the future could be huge if the transaction is not carefully planned and alternatives considered.
Timothy McCormick
Libris Solutions – Dispute Resolution Services
1990 N. California Blvd., 8th Fl
Walnut Creek, CA 94596
Mr. McCormick is very correct that you must look very closely at the tax consequences, along with the problems that can occur if you divorce, their giving up the $250,000 capital gains exemption on sale of primary residence, any falling out you might have with your parents, etc. It is worth the money to go to an expert for advice. In many cases I suggest relatlively smart people can save money by not going to an expert, but here it would be penny wise and pound foolish.
George Shers
Law Offices of Georges H. Shers
4170 Glenwood Terrace, Suite #1
Union City, CA 94587
I agree with all of the above. There are better ways of handling this than what you are planning, and will be more beneficial to you in the future from a tax standpoint.
Ken Koenen, LLM
Law Office of Ken Koenen
1111 Riverside Ave., #403
Paso Robles, CA 93446