Legal Question in Real Estate Law in California

Re: Grant Deed

This situation (adding someone to title) comes up frequently. In 90% or more of all situations, adding the spouse, child, partner, etc. to title is an unwise move. The most commonly-encountered problems are related to gift, property and capital gains tax increases and triggering a due-on-sale clause in a loan.

Another problem that sometimes comes up is regret when the rrelationship goes awry. Even with happily-married couples, changing ownership will have an effect on inheritance rights downstream, which can be important if this is a second marriage with children from a prior marriage.

While some of the tax problems do not arise between married persons, I think the bast advice I can give is to ask an estate-planning lawyer for some personalized guidance after looking at your capital gains situation and other financial factors.

If you decide to go ahead without a lawyer's assistance, perhaps a title company can prepare a simple deed for you at reasonable cost. Most deeds in California are prepared by title or escrow companies.

Re: Grant Deed

As Mr. Whipple points out, there are many complications.

Marriages do end (about 50% of them) and you are giving up 50% of the house forever. Is it the first marriage for both of you, or are their children from past marriage(s)?

I would imagine a tax attorney can give you an answer in an hour or so, but I would not do this without thinking through all of the ramifications thoroughly.