A Living Trust is an excellent tool to avoid probate. However, for it to function as intended, it is essential that all significant assets are titled in the name of the trust. In the case of California real estate, this is accomplished by executing and recording a Deed.
1
Determine the Current Title and Vesting to Your Property.
As a starting point, you need to determine the current vesting on your property. This can be done with either a title report, or by doing a bit of research on your property. Many title companies will assist with this for a nominal charge. Alternatively, you can go to your County Recorder's office and do your own research. Your goal is to determine (1) Who exactly is listed as the owner of the property, (2) How title is held (for example: Joint Tenancy, Tenants in Common, Community Property, etc), (3) The legal description of the property, and (4) The Assessors Parcel Number (APN).
2
Prepare a Deed
With the information obtained in Step One in hand you can draft a deed. You can either use a pre-printed form, or create your own. Be sure to check with your local County Recorder for any specific formatting requirements. Also, be sure your pre-printed form or template is California specific. Generally, the grantee on the Deed should be written as "[name of the trustee(s)], Trustee(s) of the [name of the trust] dated [date of the trust]" (you fill in the information in brackets). Be careful, a mistake on a Deed can be costly down the line!
3
Be Aware of Your Lender and Title Insurance
Be aware that in some instances deeding a property to your trust could violate the terms of your Deed of Trust (your mortgage). If you have concerns you should check with your lender. Also, be aware that recording a deed may affect prior title insurance.
4
Prepare a Preliminary Change of Ownership Report
Along with the Deed, you need to complete a Preliminary Change of Ownership Report. Fill-in-the-blank forms are available from your local County Assessor's website or office. Fill in the requested information and check the appropriate boxes. Sign the form.
5
Execute Your Deed
The current owners need to sign the deed. Note that your signature will need to be notarized.
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