Seaside, CA asked in Estate Planning for California

Q: My parents are planning on giving their home to one of my siblings. The home's value makes up half of the estate.

They really want her to have the home, but at the same time, keep things equitable with the other 3 kids. Is there any way to do this?

Related Topics:
1 Lawyer Answer
Shawna Murray
Shawna Murray
  • Estate Planning Lawyer
  • Irvine, CA
  • Licensed in California

A: Yes, if your parents want to keep the division equitable, they should consult an estate planning attorney. If they try a DIY plan like adding your sister's name onto the deed now or put it on a transfer on death deed, not only would the house would go directly to your sister but there are other very important consequences that they should be aware of. But if your parents left the house to you and your siblings through an estate plan, there are "trust loans" that a few California lenders do which could create an equitable division. The lender evaluates the property and the sibling who keeps the house will get a trust loan that allows the other siblings to obtain cash instead of ownership to the house. This should be done with a lender who understands Prop 58 and how to avoid reassessment in order to preserve your parent's Prop 13 tax base so that your sister's property taxes are not increased.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.