Stephen Lou, an estate planning attorney, presented on estate planning basics such as living trusts, probate, and taking title to real property. A living trust can avoid probate, allow the selection of trustees, determine beneficiaries, and hold inheritances for minors. A comprehensive estate plan includes documents like a living trust, pour-over will, power of attorney, and advance healthcare directive. When taking title to real property, options include sole ownership, joint tenancy, tenancy in common, and ownership through a living trust.

1. Presented by
Stephen Lou, Attorney
Estate Planning Basics
How To Take Title to Real Property
Buying/Selling property in Trusts
May 24, 2018
San Jose | San Francisco | Oakland
Mobile (415) 350-0553
stephen@loulawyers.com
www.loulawyers.com

2. Estate Planning Basics

3. What is a Living Trust?
What are the benefits?
• Avoid probate (costly & time-consuming)
• Select Trustees (who is in charge) and give
them power that starts immediately upon
death
• Determine beneficiaries (who gets what)
• Hold inheritance in trust for minor
beneficiaries (children don’t get 100% of
their inheritance on their 18th birthday)

4. Who needs a Living Trust?
Probate Limit in California: $150,000
Owner of real estate
Minor Children/Special Needs
Specific beneficiary designation such as
excluding an individual or compensating for
gifts during lifetime

5. What is included in a
comprehensive estate plan?
Living Trust
“Pour-Over” Will
Assignment of Assets
Trust Certification
Durable Power of Attorney
Guardianship for Minor Children
Advance Health Care Directive (Living Will)
HIPPA waiver (health care privacy waiver)
Deed transferring real estate property to Trust

6. I already have a Living Trust.
Do I need to update it?
Change in estate tax laws
Change in value and/or type of assets
Change in family dynamics such as births,
deaths, divorces
New or refinanced real property

7. Taking Title to Real Property
(Vesting) in California
- Sole Ownership
- Co-Ownership
- Trust
- Others
(Corp, LLC, Etc.)

8. • A Single Man or Woman, an Unmarried
Man or Woman or a Widow or Widower
— Not legally married Not in a DP
• A Married Man or Woman as His or Her
Sole and Separate Property
• A Domestic Partner as His or Her Sole
and Separate Property
Sole Ownership
Both married and DP, the other person will need to disclaim or
relinquish his or her right, title and interest to the property.

9. Co-Ownership
1. Joint Tenancy
• Equal undivided interest among
owners
• Must be acquired at the same time and same conveyance
• No stepped up in basis at first death
• Can’t bequest in Will
• Can sell but will break JT
• Right of survivorship – Most common before
CPWROS (2001)

10. 2. Tenancy In Common
• Often used by non-married co-owners
• Undivided fractional interest
• Can have unequal ownership %
• Can be acquired at different times
• Can be sold, leased or willed
• No right of survivorship
Co-Ownership

11. Co-Ownership
3. Community Property
• Available for Married persons and Domestic Partners
• Can bequest in Will
• If No Will then to spouse (Probate - File Spousal
Property Petition)
• Stepped up in basis at first death

12. 4. Community Property with Rights of Survivorship
• Full stepped up in Basis
• Automatically to spouse (Avoid Probate)
• Cannot Will
Co-Ownership

13. Titling in Trust
Advantages
Disadvantage
• Avoid Probate and Conservatorship
• Full stepped up Basis (Community Property Agr.)
• Direct how property passes in the trust and not by
Deed (Married Couple – Passes to spouse then
passes to kids or whomever)
• Cost of Trust
• Keep Assets properly titled
• Lenders/Banks confused about who is the
borrower (take out of trust then put back)

14. Transfer on Death Deed
1. Revocable
2. Notarized and must be recorded w/in 60 days
3. Designate beneficiary of property on death
Effective Jan 1, 2016
• If beneficiary dies first, then probate
• Problems with naming minor children.
• TOD no effect with JT and CPWROS
• Can’t revoke in event of incapacitation or qualifying
for Medicaid planning
Disadvantages
• Simple way to transfer property on death
without Will or Trust.
• Good if only asset is one house
Advantages

15. Others
• Partnership
• Corporations
• LLCs
Dictated by their governing documents; for investment
purposes; limitation of liability with personal assets

16. Buying or Selling Property in a Trust

17. Buying and Selling Property in Trust
- Usually pretty easy and no different than selling buying
as individuals while Settlors are alive.
- Some Lenders may insist individual as named
Borrower – As long as vesting is in Trust
- Issues Arise with Successor Trustee – After death of
first spouse; irrevocable? After death of both settlors -
who can transact on behalf of the trust. Was it properly
administered?

18. - Ask if Client has a trust and if they are the Settlors
(creators of the Trust)
- Certification of Trust – Most current and notarized
(Lender may have their own form)
- Let Lender, Title Company, know early about titling
and who are signatories
- If successor Trustees should contact lawyer or make
sure the trust has been administered and they can
transact on behalf of trust
Helpful Hints For Realtors

19. Thank You!
May 24, 2018
San Jose | San Francisco | Oakland
Questions?
Mobile (415) 350-0553
stephen@loulawyers.com
www.loulawyers.com