A property owner transfers their residence into a revocable family trust for estate planning purposes, with the transferors named as beneficiaries. Which of the following correctly describes the TDS requirement for this transfer under California law?
Correct Answer
B) The transfer is exempt from the TDS requirement because the transferors are beneficiaries of the revocable trust, as provided under Cal. Civil Code §1102.2
California Civil Code §1102.2 enumerates specific transfers exempt from the TDS requirement. One such exemption applies to transfers into a trust in which the transferor is a beneficiary. Because the owners are transferring to their own revocable family trust and remain beneficiaries, this exemption applies and no TDS is required.
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Previous Question
In California, the Transfer Disclosure Statement (TDS) is required by which statute?
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A California listing agent inspects a property in Long Beach and observes water stains on the ceiling and a water heater missing the required earthquake strapping. The seller insists the stains are from a spill, not a leak. Which statement BEST describes the agent's TDS obligation?