Laws, Regulations & Annotations

G

493.0000 GRANDPARENT-GRANDCHILD TRANSFER

Annotation 493.0076

493.0076 Life Estate. In 2001, Mother transfers real property to Daughter, but reserves a life estate for herself. Daughter transfers her remainder interest to her son (Mother's grandson) in 2006. Mother dies in 2014. When Mother transfers a remainder interest in property to daughter and reserves a life estate for herself, there is no transfer of a present beneficial interest in real property. By reserving a life estate, mother retains the present beneficial interest in the property. Daughter possesses a future interest in the property. Since the transfer does not meet the requirements of Revenue and Taxation Code section 60, the 2001 transfer does not result in a change in ownership. Similarly, Daughter's transfer of her remainder interest to her son in 2006 is a transfer of a future interest. Because Daughter did not transfer a present beneficial interest to her son, the 2006 transfer does not constitute a change in ownership. Upon Mother's death in 2014, the property is transferred from Mother to Mother's grandson, resulting in a change in ownership. Thus, because Mother (grandparent) is the transferor of her grandson's interest, the transfer does not qualify for the parent-child exclusion. C 4/7/2015.