When transferring ownership of real property in California from
parent* to adult child, what are the advantages/disadvantages of
a quitclaim deed versus a grant deed? (The parent* now resides
outside of California; the child resides in California.)
I think the answer to this question hinges on whether it's
necessary for title to be transferred, but I'm unclear on
such basic legal concepts as the distinction between
"ownership" vs "title transfer".
Also, what are the possible tax implications (sales tax?
gift tax?) of such a transfer: For example, is it OK for
the consideration to be nominal ($1) without having the
grantee incur an "imputed income"? (Since its purchase
25 years ago, the fair market value of the property,
which is located out in the desert, has appreciated by
only a hundred percent or so, and might now be anywhere
from $5K to $25K -- certainly not much less or much more.)
________
* - Does the answer to either question above change if
the grantor is a trustee of a living trust rather than
being an individual propertyholder? |
