My father is thinking of transferring property of his home to my sister and myself through a living will instead of inheriting through a standard will.
Property taxes are currently very low, since property was acquired many years ago and is already paid for.

Is it true that person whose name/s will be appearing as new owner/s need to be living in that house in order to have less tax imposed once the transfer goes through ?
Will the annual taxes go up once the house changes ownership ? Does it make a difference as to the amount if there will be two owners?

According to California Law how long does the process take and which is the best option?
Thanks much.