Can I be put on my parents deed to their home to avoid inheritance tax?

Lisa - while I do not know the rules that apply in California, for federal purposes, a person must have wealth in excess of $5 million before any taxes are due.  If your parents' wealth is less than $5 million you will not owe any Federal estate tax. In addition, the house would receive a new basis to compute any capital gain on sale after death.  If the property was worth $1 million at death, the basis in the property would be $1 million.  Unless you sold the house for more than $1 million, you would not owe any capital gains tax.  Most property sold at a gain after death is also taxed at favorable long-term capital gain rates.  You need to check on the laws that apply in California as to inheritances.  While California may not have a $5 million limit, it does have some limit, so if the person's total estate is worth less than the limit, no State taxes would be due.

You are confusing a few things. The estate tax or death tax currently has a $5,240,000, per person, exemption. Thus your parnets could transfer over 10 million dollars in assets without incurring any estate or gift tax. There is, however, a capital gains tax upon sale of property in some cases.  If planning is done right though this wouldn't be an issue as your parent's house would transfer to you at death with a stepped up basis. See a qualified estate planning attorne on this for sure. Lastly, is the property tax. The exclusion allows a personal residence AND $1,000,000 of other real property to transfer to a child without a change in the property tax. Good luck.