Elderly grandfather wants to leave his home equal parts to his son and grandson. The home is a tear down and only worth about $20 to $25K, the value of the 2 lots...Is that exempt from reporting if left to 2 persons??
He can specify on the TOD that the named beneficiaries shall hold title in equal shares as joint tenants. Please keep in mind that the named beneficiaries will be held personally liable for all unsecured debts of the deceased property owner, up to the value of the property that passes to the named beneficiary. The property also remains subject to Medi-Cal recapture when it is transferred by way of TOD. I am not sure what you mean by being exempt from reporting. Reporting to whom? Your grandfather should consult with an attorney before doing a TOD to make sure it's done right and is the right tool to accomplish his overall goal.
This is a public forum and communications are neither private, confidential or protected by the attorney-client privilege. My answers to your questions posted in this forum do not make me your attorney or create an attorney-client relationship. The response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains. There is no law without facts.
I agree with Ms. Ferdig's advice. Additionally, keep in mind that son's portion of the property will be exempt from property tax reassessment, but grandson's portion of the property may be reassessed for property tax purposes if grandson's parents are alive. In order to benefit from any property tax exemption, you must complete BOE form 58 after the property is transferred.
If you're planning to keep the property, you need to know that 1/2 the property will be re-assessed to current market values, because there's no property tax exemption for transfers from grandparents to grandchildren if the parent is alive. So if the father and son are on excellent terms, it would be better from a tax point of view to transfer the entire property to the son, who can then transfer 1/2 to his own son. If you're planning to sell the property, it's important to know that most title companies will not insure the title on a TOD title until three years after the death. You might try to get an estimate of value from a realtor. That might help guide grandfather's decision on how to transfer the property. Few properties on California are worth that little, even for raw land.
Years licensed, work experience, educationLegal community recognition
Peer endorsements, associations, awardsLegal thought leadership
Publications, speaking engagementsDiscipline