California homeowners and their families
Home Title and Vesting, Explained
Vesting is the way your name appears on your deed, and it is a decision worth making on purpose. It decides who can sell, who inherits, whether probate is needed, and what taxes your family may face. Here is the plain English version, for the people who own the home and the people who will one day inherit it.
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Key California numbers
Four numbers that come up in almost every family conversation about a home.

Simplified probate limit$750,000A primary residence worth this much or less can use a shorter court process. Many South OC homes are worth more.
Typical probate timeline12 to 18 monthsHow long a full probate case often takes in California before heirs receive the home.
Prop 19 inheritance cap$1,044,586Prop 19 (Proposition 19) can protect a child's property tax base up to this much above the parent's, for transfers through Feb 15, 2027.
County reporting deadline150 daysTime to tell the County Assessor about an owner's death, using form BOE-502-D (Board of Equalization).


Jump to a section

Ways to hold titleSeven options, side by side.
Probate in dollarsWhat it can cost on a $1.5 million home.
Two tax clocksProperty tax and capital gains.
For homeownersFive questions to ask this year.
For heirsThe first 150 days, step by step.




What vesting means
One line on a deed with a long reach.

When you buy a home, the title company asks how you want to take title. That answer becomes the vesting line on your deed, for example "John and Jane Doe, husband and wife, as community property with right of survivorship." Most owners choose it in about thirty seconds at closing and never look at it again.
That one line controls what happens when an owner passes away, becomes unable to manage the home, or wants to sell. It also shapes the property tax bill and the income tax bill your family may face later. The good news is that it can be changed, usually with a new deed and a conversation with an estate planning attorney.



Good to know: Escrow officers and title companies record whatever you choose, but they are not allowed to tell you which option is best. That job belongs to an estate planning attorney and your tax professional. My job is to make sure you know the question is coming before you are sitting at the signing table.




Ways to hold title in California
Seven options, in plain English.
None of these is right for everyone. The best fit depends on whether you are married, whether you have children, how much the home is worth, and what else you own. Use this as a map for your conversation with an attorney.





Unmarried owners, or a spouse who owns alone
Sole and separate property
Jane Doe, a single woman, as her sole and separate property

At death
Goes by your will or trust. With neither, state law decides who inherits.
Probate
Usually yes, unless the home fits a small estate route.
Tax basis
Full step up in basis at death.
Heads up
If you are married, the title company often asks your spouse to sign away any claim so the home can be sold or insured.




Married couples and registered domestic partners
Community property
John Doe and Jane Doe, husband and wife, as community property

At death
Each spouse's half passes by will or trust.
Probate
Often a simpler spousal property petition, but still handled by the court.
Tax basis
Both halves step up at the first death.
Heads up
It does not send the home straight to the survivor, so it can still lead to court.




Married couples
Community property with right of survivorship
John Doe and Jane Doe, husband and wife, as community property with right of survivorship

At death
Goes directly to the surviving spouse.
Probate
None for this home at the first death.
Tax basis
Both halves step up at the first death.
Heads up
It makes the first transition smooth. What happens after the second death still needs a plan, which is usually a trust.




Spouses, or a parent adding a child
Joint tenancy
John Doe and Mary Doe, as joint tenants

At death
Goes straight to the surviving owner, whatever your will says.
Probate
None at the first death.
Tax basis
For owners who are not spouses, only the share of the owner who died steps up.
Heads up
A child on your deed brings that child's creditors, divorce and lawsuits into your home. It can trigger a property tax reassessment on the share you transfer, and you lose the ability to sell without them. Talk to an attorney before using this as a shortcut.




Unmarried partners, siblings, co investors
Tenants in common
John Doe and Mary Doe, as tenants in common

At death
Each owner's share goes by that owner's will or trust. There is no survivorship.
Probate
Yes for that share, unless it is held in a trust.
Tax basis
Each owner's share steps up at that owner's death.
Heads up
The relatives of one owner can become co owners with the survivor, and any co owner can ask a court to force a sale.




Owners who want privacy and no probate
Revocable living trust
Jane Doe, Trustee of the Doe Family Trust dated March 1, 2024

At death
Your successor trustee carries out your instructions, privately and without a court.
Probate
None for a home that is properly titled in the trust.
Tax basis
Full step up at death. Moving the home into your own revocable trust does not trigger a property tax reassessment, and you keep your homeowners' exemption.
Heads up
The trust has to actually own the home. A signed trust with a deed that was never recorded can leave the home in probate. Setting one up costs attorney fees.




An add on for one to four unit residential property
Revocable transfer on death (TOD) deed
A TOD deed is a separate deed you sign and record now that names who receives the home when you pass. You keep full ownership and control while you are alive, and you can change your mind at any time. California allows it under Probate Code section 5600 and following.

Probate
None for that home. It does not put the home beyond reach of your debts.
Tax basis
Full step up at death.
Formalities
Sign in front of a notary with two witnesses, and record it with the County Recorder within 60 days of signing and before you pass. An unrecorded deed does nothing.
Heads up
A death is still a change in ownership for property tax. It does not override joint tenancy. State law currently allows new TOD deeds until January 1, 2032 unless extended, and deeds signed before then stay valid.




Descriptions are general. Community property and joint tenancy interact in ways that depend on your marriage, how you acquired the home, and your other assets. An estate planning attorney should confirm which wording fits you.




Probate in dollars
What a plan can save your family.
California sets probate fees by statute, and they are based on the gross value of the home, not your equity. A mortgage does not reduce them. The attorney receives a fee and the executor receives a fee of the same size. Here is the math on a $1.5 million home with a $400,000 mortgage.

Full probate
Living trust or TOD deed

Court involvement
Supervised by the court
None
Typical timeline
12 to 18 months
Set by the trust and the successor trustee
Public record
Yes
No
Statutory attorney fee
$28,000
$0
Statutory executor fee
$28,000
$0
Statutory fees, about
$56,000
$0

Illustration only. The statute allows 4% of the first $100,000, 3% of the next $100,000, 2% of the next $800,000, and 1% of the next $9 million, for each of the two fees. Court costs, the probate referee's fee, and any extra fees a judge approves are additional. A trust has its own costs, including your attorney's fee to set it up and any trustee costs later, so ask your attorney for a quote and compare.
Small estate rules: For deaths on or after April 1, 2025, California lets a primary residence worth up to $750,000 pass through a simplified court petition instead of full probate. That helps modest homes. In South Orange County, a home worth more than $750,000 still goes through full probate if it has no trust, TOD deed or survivorship wording behind it.




Two tax clocks
Property tax and capital gains run separately.
California has no state estate or inheritance tax, and the federal estate tax exemption is $15 million per person in 2026, so most families will not owe either. The two taxes below are the ones that do reach families.



1. Property tax: what happens to the Prop 13 base
If your parents have owned for decades, their taxable value is likely a small fraction of market value. When the home passes to the next generation, the County Assessor treats it as a change in ownership and resets the taxable value to market, unless an exclusion applies.
Under Prop 19, the child keeps the parent's low base only if the home was the parent's primary residence, the child moves in within one year and makes it their primary residence, and a claim is filed on time. There is a cap. If the market value is more than the parent's taxable value plus $1,044,586 (the amount for transfers through Feb 15, 2027), the extra is added to the child's taxable value. Second homes and rentals get no exclusion.

Parent today
Child moves in (Prop 19)
Child rents it or keeps it as a second home

Taxable value
$300,000
$955,414
$2,000,000
Yearly property tax, about
$3,450
$10,990
$23,000

Illustration only. Assumes a $2,000,000 market value at the date of death, a parent taxable value of $300,000, and a combined rate of about 1.15%. Under Prop 19 the child's taxable value in this example is market value minus the cap, or $2,000,000 minus $1,044,586. Your tax bill depends on your tax rate area and any direct assessments. Try your own numbers on my Prop 19 page.



2. Capital gains: the step up in basis
Basis is the starting number the IRS (Internal Revenue Service) uses to measure your profit when you sell. A home that passes at death gets a new basis equal to its value on the date of death. A home that is given away while the owner is alive keeps the giver's original basis. The difference can be very large.

Inherited at death
Gifted while alive

Parents paid in 1989
$350,000
$350,000
Child's basis
$2,000,000 (value at death)
About $350,000 (carried over)
Taxable gain if sold for $2,000,000
About $0, before selling costs
About $1,650,000

Illustration only. Basis also includes the cost of major improvements. A gift may require a federal gift tax return. If the child lives in a gifted home as a primary residence for at least 2 of the 5 years before selling, up to $250,000 of gain may be excluded. A CPA (certified public accountant) can run the exact numbers for your family.


What this means for a deed: Adding a child to your deed while you are alive is a gift. It can cost your family the full step up and trigger a property tax reassessment on the share you give. Leaving the home through a trust, a TOD deed or survivorship wording keeps both benefits. That is why the vesting conversation belongs with an attorney before any deed is signed.




For homeowners
Five questions to ask this year.


How is my home titled today? Look at your grant deed from closing, or ask the County Clerk-Recorder or your title company for a copy. The vesting line is near the top.
If I have a trust, does the deed name it? The home belongs to the trust only if a deed was recorded moving it there. Confirm it, especially if you bought or refinanced after signing the trust.
Have I ever added someone to my deed as a favor or for convenience? If yes, an attorney should look at it before anything else changes.
Does my family know where the documents are? Name your successor trustee or executor, and tell them where the trust, the will and the insurance papers live.
Has my plan kept up with my life? A move, a remarriage, a new grandchild, or a large change in home value are all good reasons for a review.



Moving soon? If you sell and buy your next home, decide how to take title before closing, not at the signing table. If you have a trust, you will usually want the new home vested in the name of the trust from day one. If you are 55 or older, a Prop 19 move is a good moment to do this, and I coordinate the timing with your attorney. See my Prop 19 page for the move rules.




For heirs and families
If you have inherited a home, here is the order to take things in.

Losing a parent or loved one is hard enough. The home does not need decisions on day one, but a few deadlines are real. Take these steps in order, and ask for help early.
Most of the real deadlines come later, and the first one is 150 days after the death. In the first days, the job is to keep the home safe and insured and to gather the paperwork.




Gather the documents.
Look for the trust, the will, the deed, the mortgage statement, the property tax bill and the homeowners insurance policy. Do not sign anything or change any account title yet. Order several certified copies of the death certificate.
Call an attorney before you change anything.
An executor or trustee has legal duties, and a trust administration or probate attorney will tell you which applies. Ask whether the home was titled in a trust, held in joint tenancy, or covered by a TOD deed, because that decides what happens next.
Secure and insure the home.
Tell the insurance company. Many policies limit coverage when a home sits vacant, often after about 30 to 60 days, so ask what is needed. Keep the utilities on, forward the mail, change the locks, and keep paying the mortgage, property taxes and HOA (homeowners association) dues.
Report the death to the County Assessor.
File form BOE-502-D (Change in Ownership Statement, Death of Real Property Owner) within 150 days of the date of death. If the home will become your primary residence, ask the Assessor about the Prop 19 claim form and the homeowners' exemption, because both have filing deadlines. Expect a supplemental tax bill if the home is reassessed.
Get a date of death value.
A licensed appraiser's value as of the date of death sets your tax basis. Keep the report for as long as you own the home. I can walk you through the local market and introduce you to an appraiser.
Choose what the home will become.
Moving in, keeping it as a rental, or selling each have different tax results, and the table below shows how they compare.



Move in
If the home was the parent's primary residence and you make it yours within one year, Prop 19 may let you keep the parent's low taxable value, up to the cap.
Keep as a rental
The home is reassessed to market value, and you take on landlord duties. The stepped up basis still applies when you sell later.
Sell
With a stepped up basis, there is often little or no taxable gain if you sell soon after the date of death. Carrying costs such as taxes, insurance and upkeep add up while the home sits.



If there are several heirs: Agree early on who handles the house, who pays for what, and what happens if one person wants to sell and another wants to keep it. Co owners can ask a court to force a sale, and a calm conversation up front is cheaper than that. If the home has a reverse mortgage, there is a clear plan for that too, which I explain in my reverse mortgage guide.






Who does what
I am your Realtor, not your attorney. Here is the team.
Vesting touches the law, taxes and real estate at once. A good plan has the right person on each piece, and I am happy to introduce you to professionals I trust.

Estate planning attorney
Drafts the trust, the deed and the TOD deed, and tells you which vesting fits your family.
CPA
Runs the numbers on basis, gifts, and income tax before you act.
Title company and escrow
Records the deed and issues title insurance. They cannot advise you on vesting.
County Assessor
Handles property tax reassessment, the Prop 19 claim, and the homeowners' exemption.
Brandon Menchaca, Realtor
Prices the home, times a move or a sale, coordinates the professionals, and keeps the process calm.





Common questions
Can I just add my child to my deed?
You can, but it is a gift. It can cost your family the full step up in basis, trigger a property tax reassessment on the share you give, and expose your home to your child's creditors or divorce. Ask an estate planning attorney about a trust or a TOD deed first, because they usually protect the same goals with fewer side effects.
Does a trust lower my property taxes?
No. Moving your home into your own revocable trust does not change your property taxes, and it does not trigger a reassessment. It keeps things exactly as they are while you are alive, and it can help your family avoid probate later.
Is a trust worth it if my home is worth less than $750,000?
Maybe. The simplified petition can help modest homes, but it still involves the court, and a trust can also cover incapacity, privacy, and other assets. An attorney can tell you whether the cost makes sense for your whole picture.
I signed a trust years ago. Is my home in it?
Only if a deed moved the home into the trust and it was recorded. Pull a copy of your current deed and check the vesting line. If it still shows only your name, call your attorney.
Does a TOD deed replace a trust?
For a single home, it can do the same probate avoiding job at a lower cost. It does not manage the home if you become unable to, it does not cover other assets, and it has strict signing and recording rules. Many families use a trust for the full plan and consider a TOD deed for one property.
Do I owe tax when my parents' home passes to me?
California has no inheritance tax, and the federal estate tax applies only to very large estates. The property tax reassessment and the basis rules above are the usual money questions, and a CPA can look at your exact situation.
Are you an attorney or a tax advisor?
No. I am a real estate agent. I explain how title and taxes affect a move or a sale, and I coordinate the people who give legal and tax advice.





Not sure how your home is titled? Let's find out.
No pressure and no obligation. I will help you read your deed, sort out what to ask your attorney and your CPA, and plan around any move you have in mind. If you have inherited a home, I can help with the home side of the work.
Call or text 949-302-2741
Send me a message
Brandon Menchaca · Luxury Property Specialist · Coldwell Banker Global Luxury · 12 years in South OC




General information only, not legal, tax or financial advice. Brandon Menchaca is a real estate agent, not an attorney or a CPA, and no attorney client relationship is created by this page. Figures and rules reflect California and federal law as of October 2026, including the Prop 19 inheritance cap in effect through February 15, 2027, the small estate thresholds that took effect April 1, 2025, and the TOD deed statute that is currently scheduled to end January 1, 2032. Laws, thresholds and deadlines change, so confirm with an estate planning attorney, a tax professional and the County Assessor before you act. Examples are illustrative only and use assumed values. CalDRE #01947478. Each office independently owned and operated. Equal Housing Opportunity.