California AB 139 – Transfer on Death – How Does This Affect You?

 

California Legislature has enacted Assembly Bill 139, the “non-probate transfers: revocable transfer upon death deeds” legislation.

 

When your family member passes away, one of the silver linings is the inheritance. However, until recently, in order to make a clean transfer of title for Real Property in California required not only a well-written Last Will and Testament but also a Living Trust. The aforementioned documents can be complex, expensive, time-consuming (not to mention emotionally draining) to create properly. CA AB 139 helps to streamline the process of leaving a home to a loved one in the State of California.

 

The purpose of the new law is to provide a transfer of real property on the death of its owner without a probate proceeding.

 

The new law adds a Part 4, Revocable Transfer on Death Deed, to Division 5 of the Probate Code (commencing with section 5600).

 

The new law applies to revocable transfer on death deeds made by a transfer or who dies on or after January 1, 2016, whether the deed was executed or recorded before, on, or after January 1, 2016.

 

This law affects only residential properties.

 

It means that by simply filling out the AB 139, a property owner can now leave their property title to whoever they select with one simple form. Identifying who should receive the title, in the event of your death, ensures that your loved ones receive the property, without having to go through the expense, time, and frustration of probate court.

 

For more information, please check with your legal professional and/or tax financial advisor.