How to Transfer Property to a Living Trust in California
A living trust is one of the most effective estate planning tools for avoiding probate and ensuring a smooth transfer of assets to your beneficiaries. However, simply creating a trust is not enough—you must properly fund it by transferring assets into the trust, including real estate. If you do not record a deed transferring your property to your trust, it remains in your individual name and may still be subject to probate upon your passing.
In this guide, we’ll walk you through the steps, forms, and fees involved in transferring real estate to a living trust in California, including special requirements in counties like Riverside.
Step 1: Determine How Title Will Be Held
If you already have a trust, you can take title directly in the name of your trust instead of your individual name. For example:
"John Doe and Jane Doe, Trustees of the Doe Family Trust dated January 1, 2025."
If your property is still in your name, you’ll need to prepare and record a new deed to transfer it into your trust.
Step 2: Prepare a New Deed to Transfer the Property
To legally transfer your property into your living trust, you must prepare and record a deed with the county recorder’s office where the property is located. The most commonly used deed types for this transfer are:
Grant Deed – Typically used when transferring property between related parties or into a trust.
Quitclaim Deed – Sometimes used but does not provide any warranty of title.
Important: If your property is located in Riverside County, you must also submit a Transfer Tax Affidavit along with the deed.
Step 3: Complete Required Forms
In addition to the deed, you must complete and submit the following forms when recording your transfer:
✅ Preliminary Change of Ownership Report (PCOR)
Required in all California counties to update property records.
This form helps the county determine whether the transfer qualifies for a property tax reassessment exclusion under Proposition 13 or Proposition 58/193 (parent-to-child or grandparent-to-grandchild transfers).
Filing this form incorrectly could result in higher property taxes.
✅ Transfer Tax Affidavit (Riverside County Only)
Riverside County requires a Transfer Tax Affidavit even if no documentary transfer tax is due.
This form confirms whether the property transfer is exempt from transfer tax (for example, when transferring to a trust with the same beneficial owner).
Step 4: Calculate Recording Fees and Transfer Taxes
Recording fees and potential transfer taxes vary based on county and property type:
🔹 Primary Residence (Owner-Occupied Home)
No documentary transfer tax if transferring into a revocable living trust where you are the trustee.
Recording fee: Varies by county but typically $50–$100.
🔹 Non-Primary Residence (Rental or Investment Property)
Some counties may impose transfer taxes if the beneficial ownership changes.
Recording fee: Varies but typically $50–$100.
If your property is in Riverside County, you must file a Transfer Tax Affidavit to confirm whether tax applies.
Step 5: Record the Deed with the County Recorder
Once all documents are completed, you must file them with the county recorder’s office where the property is located. You can:
✔ File in person at the county recorder’s office.
✔ Mail the deed along with a check for the recording fee.
✔ Use an online recording service (some counties allow e-recording through approved vendors).
Step 6: Notify Your Mortgage Lender and Insurance Company
Mortgage Lender: If you have a mortgage, your lender cannot call the loan due for transferring property into your own revocable living trust (per the Garn-St. Germain Act). However, you should notify them of the transfer.
Homeowner’s Insurance: Update your insurance policy to reflect the trust ownership and ensure coverage remains intact.
What Happens If You Don’t Transfer Your Property Into Your Trust?
If you fail to record a deed transferring your property to your trust:
🚨 The property remains in your individual name and may be subject to probate upon your passing.
🚨 Your successor trustee may need to file a Heggstad Petition (under Estate of Heggstad, 1993) to prove the property was intended to be part of the trust—but this involves legal costs and court approval.
To avoid these issues, recording the deed promptly is essential.
Need Help Transferring Property Into Your Living Trust?
Ensuring your property is properly transferred into your revocable living trust is a critical step in estate planning. Our firm assists with preparing and recording deeds, filing necessary tax forms, and ensuring your trust is fully funded.
Contact us today for assistance with your property transfer and estate planning needs.
