Monday, February 13, 2012

Free Legal Question: Real Estate Law | California | I plan to transfer ...

I agree with both previous answers that this is almost certainly a bad idea, especially given that you're wondering if you could get the property back into your own ownership before your son turns 18.

Minors can own real estate, but when they do, it is almost always acquired by inheritance. Minors cannot sell real estate, or manage it. You'd have to get a court order to re-acquire the property before your son was 18 (or became emancipated), and the court would probably require you to pay him fair market value.

Often, people consider "temporarily" placing property in the hands of a relative in order to shield the property from a creditor's lien. This is fraudulent. See the Uniform Fraudulent Transfer Act in the Civil Code, sections 3439-3439.12. Creditors can find out about such transactions from the public record and have them nullified.

Also, making a gift of real property has bad income-tax consequences for the family as a whole.

Source: http://www.lawguru.com/legal-questions/-/plan-transfer-free-clear-real-446874165/

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