QUESTION
How would a tenant in common quick claim their share to their children?
Asked on Jul 05th, 2016 on Landlord and Tenant Law - California
More details to this question:
I have a quick claim with my siblings as a tenant in common and want to quick claim 1/4 share to my 2 children.
3 ANSWERS
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First, it's called a Quit Claim not quick. The way you do it is to obtain a Quit Claim form, fill it out properly (which would include a proper legal description of the property) and sign it before a notary. Then you record the signed and notarized Quit Claim deed with the County Recorder where the real property is located. You will also have to prepare and file a Preliminary Change of Ownership Report (PCOR) with the County Assessor's Office. BUT you should really consult an attorney to discuss the potential legal and tax ramifications of adding your children to the property ownership prior to your death. Most of the time, it?s a very BAD idea to do so. It's usually MUCH better to let them take by inheritance for a variety of legal and tax reasons. You really should speak with an experienced attorney about your particular situation before you add them to the property. Once you deed an interest to them, you can't take it back if you subsequently find out it was a mistake to do so.
Answered on Aug 05th, 2016 at 5:35 AM
You shouldn't use a quitclaim use a gift deed. If you transfer during life you lose favorable tax treatment for the kids. Better to form a trust and leave the property to them.
Answered on Aug 03rd, 2016 at 6:56 PM
I am unsure what you mean by "quit [not quick] claim with my siblings". ?You can quit claim you interests to your children in the same fashion. However, you need to look at what the tax consequence would be [no stepped up basis at your death]. Many attorneys advise against given property interests to children while you are alive [many reasons for that].
Answered on Aug 03rd, 2016 at 6:56 PM