Can a home held in a living trust be re-deeded directly by the trustor or does it have to be taken out of the living trust first by the trustor?
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Can a home held in a living trust be re-deeded directly by the trustor or does it have to be taken out of the living trust first by the trustor?
My wife and I are my mother’s live-in caregivers. I am the trustee of her living trust that contains, among other things, her home/principal residence owned free and clear. She now wishes to deed that property to me, my wife, and herself, jointly, with rights of survivorship, effectively removing it from the assets held by the trust.
Asked on August 4, 2012 under Estate Planning, California
Answers:
MD, Member, California Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
I am unsure why she would wish to deed the property via quitclaim or other form of transfer to all three of you as joint tenants with rights of survivorship because to do so would not benefit anyone. First, while it is in the trust, it would be exempt from probate for certain while issues of transfer if not done properly may wind up still requiring probate if taken out of the trust. Second, you need to check with your state department of revenue and other taxing authorities and of course your accountant to see if this would currently impact all three of you with respect to taxes owed and deductions you may or may not qualify for each when filing taxes.
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