Laws, Regulations & Annotations
Property Taxes Law Guide – Revision 2017
Property Tax Annotations
220.0000 CHANGE IN OWNERSHIP
1. Revenue and Taxation Code section 62(d) excludes trusts because of the type of trust. There is no limitation as to who may be the trustee.
2. Section 62(d) excludes from change in ownership property transferred into:
(a) A revocable trust, or
(b) An irrevocable trust if the transferor is a present beneficiary of the trust.
If a trust does not meet either of these qualifications, there will be a change in ownership whenever property is transferred into a trust.
3. Section 62(d) makes no mention of community or separate property. The interspousal exclusion (Revenue and Taxation Code section 63) applies to all transfers between spouses whether the property is separate property or community property.
4. Section 62(d) excludes from reappraisal creation or termination of a trust in which the trustor retains the reversion and in which the interest of others does not exceed 12 years duration. It makes no difference who the trustee is.
5. Revenue and Taxation Code section 61(g) provides that any interest in real property which vests in persons other than the trustor (or pursuant to section 63, his spouse) when a revocable trust becomes irrevocable is a change in ownership. Where the Settlors are husband and wife, on the death of one of them, for any portion of a trust that vests in the spouse there will be no change in ownership until he or she dies, but for the other portion, there will be a change in ownership upon the death of the first Settlor. C 1/15/1980.