What docs & procedure is used 2 transfer title of a house from an individual to a SNT without paying taxes?

Last August monies were transferred to a friend/trustee of a Special Needs Trust for my benefit, from a trust left by my late father 2 purchase a "fixer" house 4 me in California. The title was left in her name so she could get an equity line/mortgage 2 remodel it cause banks won't lend 2 a trust. She still hasn't gotten a loan & doesn't seem motivated 2 do so. She's a senior; going on vacation 2 Alaska next week; lives in Florida & B 4 she leaves, needs 2 transfer title of the house 2 the SNT 4 me. If she dies B 4 she returns it will be stuck in her estate & I will have a big problem w/her family. Must transfer taxes B paid when she transfers title of the house into the SNT or 2 me as individual? What documents must B signed 2 effect the transfer? Her inactions R hurting me. HELP!

Antioch, CA -

Attorney Answers (3)

Michael Raymond Daymude

Michael Raymond Daymude

Litigation Lawyer - Sherman Oaks, CA
Answered

The trustee acted wrongfully when she placed the corpus, including the real property, in her name and not as trustee of the special needs trust. It is not clear where jurisdiction lies -- probably Florida. However, the county where the property is located, especially if that is the only asset of the trust, may also have jurisdiction.

I would not advise transfer of the real estate to you -- the purpose of a special needs trust is to keep the property out of your name so you can still qualify for government benefits. Transfer of the property to you would defeat the purpose of the trust and be in violation of the terms of trust.

There is a lot more at stake here than “transfer taxes.” I strongly suggest you personally consult local probate counsel who can review all the facts with you. At first blush, it appears you need to file a petition in probate court to have the trust handled by a different trustee and the property transferred back into the trust. Good luck.

SINCE 1974. My answers are for general information only. They are not legal advice. Answers assume California law.... more
Kelvin P. Green

Kelvin P. Green

General Practice Lawyer - Torrance, CA
Answered

The trustee in my mind was absolutely wrong and has breached her duties and that is serious. This also seems like there was some collusion to put one over on a bank. If she had gotten an equity line to remodel this, some one is responsible for the loan and the home would have been encumbered with debt. If the equity line defaults and forecloses, the house goes away and you can't be taken care of. I am not even sure that purchasing the home was a good idea at all...

As MR Daymude has suggested you need an attorney and you need one fast

This is for general information only. Nothing in this information should be construed as creating an attorney-... more
Eric Jerome Gold

Eric Jerome Gold

Estate Planning Attorney - Calabasas, CA
Answered

Based on the information you provided, you need to consult with a local estate planner to review the trust and the ret of the facts surrounding the situation. After a thorough review of the circumstances, you will be able to receive appropriate guidance. This is an issue that needs to be resolved sooner rather than later.

** LEGAL DISCLAIMER ** My response above is not legal advice and it does not establish an attoreny-client... more

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