Quit Claim in Lieu of Living Trust

[Honeyred]

My question involves estate proceedings in the state of: California

My mother's property is held in a living trust and paid in full. My father died Oct 2008, making her the sole owner.

To make give ownership of her property to me in the easiest way possible, she plans to:

1) Revoke the trust the property is currently held under
2) Quit Claim 1/2 ownership of the property to me (current value $210K)

Her assumptions are:
1) Upon her death I automatically become sole owner
2) I will also be primary resident, so I will not have to pay taxes

Are there any errors in this plan?

[aaron]

Why is any of that "easier" than leaving the property in the living trust?

[lwpat]

If it is a revokable living trust then she can do whatever with the trust assets. There will be gift taxes and you will not have the step up in value of any real property in your plan. consult with an estate planning attorney and consider long term care insurance for your mother.

[Mr. Knowitall]

Given your significant student loan liability, and your professed inability to repay, mom should consider the consequence of gifting you half of her home and potentially opening up her home to being attached by your creditors.

[Honeyred]

Thank you Mr. Know-it-all.....that is the deciding factor for me. I don't want to put her at risk.