How to Transfer Real Property Into a California Living Trust

Written by Kimberlee Leonard; Updated July 25, 2017

Properly transferring your real property into a living trust ensures your desires upon death are upheld. Many people fail to file the proper deeds after establishing the trust. When this happens, the property is still subject to probate court and costs. Ultimately, the property may not go to the desired beneficiary.

California Revocable Living Trust

A California revocable living trust gives a person control of the trust assets while alive but establishes the parameters of transfer to beneficiaries after death. A trust is a unilateral contract between the grantor who owns the assets and the beneficiary receiving the assets. It is managed by a trustee. Revocable means it can be withdrawn at any time by the trustee during the grantor's life. As such, the grantor and trustee are often the same person in a revocable living trust. Trusts allow assets to pass to beneficiaries avoiding the entire probate process as long as the trust is properly created, funded and executed.

Properly Created Trust

A properly created trust defines all parties including the grantor, the trustee and beneficiaries. It usually includes a last will and testament, but more importantly, it should contain a schedule of assets. The real estate property must be properly listed on the schedule of assets including the address, assessor's parcel number and legal description of the property. The name on the title should match exactly the name of the grantor. Discrepancies open the door for someone to contest the trust. Trusts are often created by attorneys, but this isn't required. As long as the elements are described and the document is dated and notarized with original signatures, it is a legal trust.

Funding the Trust

Many grantors make the mistake of never funding the trust. They think that the schedule of assets is the only thing necessary for the successor trustee to execute their wishes. This is wrong. All accounts must be renamed with the owner becoming the trust. In California, real property is assigned to a trust using a grant deed. A grant deed is a notarized form that states the owners of the property give the property to the trust. The owner is the grantor on the deed and the trust is named as the grantee. Make sure the names all match legally to the trust and deed. The grant deed is filed with the county recorder to officially fund and execute the trust. Contact homeowners insurance policies to name the trust as the policy holder, protecting the asset against loss.

Executing the Trust

If the grantor is the trustee while alive, a successor trustee is named in the trust to oversee the distribution of trust assets after the grantor's death. The trust might outline how those assets are to be liquidated and distributed. For example, a minor child who is named as a beneficiary may have a designated guardian. The house might be retained according to the trust for the child to occupy while growing up and not be liquidated until the child is of legal age.

About the Author

Kimberlee Leonard


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