I own a condo (no mortgage) in CA that currently is titled in just my name. I recently got married. I have a nephew in AZ. Only other assets I have are investment accounts with beneficiary/TOD already setup.
For estate planning purpose I’m considering two scenarios for condo (separate property before marriage): 1) spouse inherits, or 2) nephew inherits.
1) If I want spouse to inherit condo, it seems like “interspousal deed” is best option to get her name on title as CPWROS.
Only unique issue for me is I believe this technically would trigger a 50% gift… 100% separate property becomes 50/50 community property. (She’s a permanent resident alien, not citizen, so I think I need to file Fed 709 Gift Tax Return)
2) If I want nephew to inherit condo, I could setup a Transfer on Death deed. However, I’ve read that if someone inherits CA real estate via Transfer on Death, it can be difficult for inheritor to quickly sell property because of problems getting title insurance since Transfer on Death exposes inheritor to creditors of deceased for up to 3 years.
Question… does anyone have experience with problems trying to quickly sell CA real estate inherited via Transfer on Death deed?
For estate planning purpose I’m considering two scenarios for condo (separate property before marriage): 1) spouse inherits, or 2) nephew inherits.
1) If I want spouse to inherit condo, it seems like “interspousal deed” is best option to get her name on title as CPWROS.
Only unique issue for me is I believe this technically would trigger a 50% gift… 100% separate property becomes 50/50 community property. (She’s a permanent resident alien, not citizen, so I think I need to file Fed 709 Gift Tax Return)
2) If I want nephew to inherit condo, I could setup a Transfer on Death deed. However, I’ve read that if someone inherits CA real estate via Transfer on Death, it can be difficult for inheritor to quickly sell property because of problems getting title insurance since Transfer on Death exposes inheritor to creditors of deceased for up to 3 years.
Question… does anyone have experience with problems trying to quickly sell CA real estate inherited via Transfer on Death deed?
Statistics: Posted by gromitjs — Wed Jul 24, 2024 11:38 pm — Replies 0 — Views 169