Q: How to ensure no property tax reassessment when 3 Joint Tenants are doing a revocable living trust in CA?
Besides PCOR, does Santa Clara County require a DTTA, transfer tax affidavit (R&T 11930) or recording fee exemption §27388.1(a)(2)(B) cover sheet? When there is no actual money involved in transferring the warranty deed from 3 joint tenants into a living trust in which the same 3 people are the trustees, will there be any fee at the County Clerk-Recorder's Office? Do all 3 of us need to be present?
When we fill out the document transfer tax as $0 with exemption code R&T 11930, what valid reason for exemption shall we state? https://clerkrecorder.santaclaracounty.gov/recording-documents/recording-real-estate says, "The tax declaration must be signed by the party computing the tax or claiming an exemption." Should one of the 3 trustees sign it? Or is it better for the County Clerk to sign or fill out this section?
Thank you
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A:
To avoid property tax reassessment when transferring property into a revocable living trust with three joint tenants in Santa Clara County, you should complete a Preliminary Change of Ownership Report (PCOR). Besides the PCOR, you typically need to submit a Transfer Tax Affidavit using exemption code R&T 11930. Since the transfer is among the same three individuals without any money changing hands, this qualifies for the exemption. There usually won’t be a transfer tax, and recording fee exemptions under §27388.1(a)(2)(B) should apply.
When preparing the documents, you can indicate the transfer amount as $0 and use exemption code R&T 11930, stating that the transfer is a revocable transfer to a living trust with no change in ownership or consideration. One of the three trustees should sign the tax declaration, as the declaration must be signed by someone with authority to claim the exemption. It’s not necessary for all three to be present during the recording process, but the signed documents must include the appropriate exemption statement.
At the County Clerk-Recorder's Office, there should be minimal or no fees involved when transferring the warranty deed under these exempt conditions. Ensure all forms are accurately completed and signed by the designated trustee to facilitate a smooth recording process. If you have any doubts, contacting the Clerk-Recorder’s office directly for guidance can help ensure all requirements are met correctly.
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