Laws, Regulations & Annotations

P

625.0000 PARENT-CHILD TRANSFER

Annotation 625.0208

625.0208 Trusts.

1. A transfer of a vacation residence to an irrevocable trust by a parent trustor for a term of ten years is excluded from change in ownership where the parent trustor retains the present beneficial enjoyment of the vacation residence.

2. The outright transfer to parent's child when the trust terminates after ten years is excluded from change in ownership if child files a timely claim under Revenue and Taxation Code section 63.1.

3. If, alternatively, the property is transferred to a successor trust for the sole benefit of the child until he reaches age 21 instead of outright to the child, such transfer is excluded from change in ownership if child files a timely claim under Revenue and Taxation Code section 63.1. When the child attains the age of 21 and the trustee transfers the property outright to the child there is no change in ownership.

4. Under the terms of the foregoing trust, the property is transferred to parent's estate by the trustee if parent dies prior to the expiration of the ten year term. Although there would be a change in ownership at parent's death unless an exclusion applied, the subsequent transfer to parent's estate by the trustee would not be a change in ownership.

5. If the trustee sells the property to the child during the ten year term, there would be no change in ownership if child files a timely claim under Revenue and Taxation Code section 63.1. C 1/10/1996.