Transfer of Real Property Out of Revocable Living Trust

[tomallyn]

We are in California.

My mother passed way and left my her home to my son, daughter, and me equally. We three are also equally the executors of her trust and will.

My son and daughter have decided they would like to give up there share of the home to me and for me to transfer the home out of the revocable living trust into my name. Since the three of us agree what must we do to accomplish this? Can we three simply sign a quit claim deed and deed the property over to me?

In case this is important there is a small mortgage on the home which I have been paying.

 

[tranquility]

How long ago did the "revocable living trust" become the *formerly* revocable living trust? If soon enough, disclaimers may help. The problem will be what happens to the property then? That should be listed in the trust as well. If there is a distribution and the parties quitclaim to the OP, there are gift tax issues.

I'd see an attorney to advise. Not only for the gift tax issues, but also for the actual ownership transfer issues. A muddied title will make the house almost impossible to sell later on.

 

[TinkerBelleLuvr]

I highly suggest a probate attorney to help you through the process. You may seriously think about establishing your own revocable trust to help with any future transfers of the house.

 

[TrustUser]

my two cents - the job of the trustee is to comply with the instructions of the trust.

the fact that the beneficiaries all agree to something does not change the above.

you want to make sure that the instructions are followed as stated.

what the beneficiaries do with property that they own individually, is their own business.

although, as tq stated, you would want to get advice on gift tax issues, and other issues.

personally, i would lean towards seeing a tax accountant, regarding any sort of tax issues.

 

[tomallyn]

I'm sorry I thought I said this in my original post, but we three are the trustees as well as the beneficiaries, but thank you regarding the potential tax issues.

 

[tranquility]

It's not just tax, it is the legality of the transfer. If the trustees don't act in accordance to the terms of the trust, title is compromised. The trust cannot give you anything. It can distribute it to all and each can give it to you. That you all agree is relevant only in that they won't sue today. However, if one of the beneficiaries had debt problems sometime in the future, if this is not done correctly it is possible for the outside party to unwind the transaction. Not because it was a transfer without value, but because it was an illegal transfer.