California Gift Deed With Retained Life Estate
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FAQ
A life estate vests the beneficial use of property in a person for their lifetime. The person who holds the life estate is the life tenant. The life tenant may have the right to occupy a residential property and/or the right to income from property that is rented or leased to others.
California Transfer on Death Deeds You must (1) sign the deed, (2) have two adults who are not beneficiaries witness your signing of the deed, (3) have your signature notarized, and (4) record (file) the deed with the county clerk's office within 60 days of having it notarized. ... The beneficiary's rights.
The Life Tenant Owner maintains the absolute and exclusive right to use the property during his or her lifetime. This can be a sole owner or joint Life Tenants. Life Tenant(s) maintain responsibility for property taxes, insurance and maintenance.
Because beneficial use of the property accompanies a life estate, the creation, transfer or termination of a life estate is a change of ownership under Proposition 13. Under certain circumstances, that change of ownership can lead to a reassessment of the property and the establishment of a new base year value.
Creating a life estate only requires a new deed to be drafted and recorded. Probate avoidance. Ownership automatically transfers to the remainder owner upon the death of the life tenant owner.