![]() A legal separation, even that of many years, is not equivalent to a divorce for purposes of this exclusion. Legally separated spouses are still married. The use of the word "terminated" expresses the Legislature's intent that the in-law relationship exists until the marriage no longer legally exists. Revenue and Taxation Code section 63.1(c)(3)(C) provides that a son- or daughter-in-law qualifies as a child of a mother-in-law or father-in-law until remarriage if the marriage on which the in-law relationship is based is "terminated" by death, or until divorce. The grandparent-grandchild exclusion does not apply to a transfer from a grandmother to her grandchildren when the daughter-in-law to the grandparent (and mother to the grandchildren) was separated but not divorced from her now-deceased husband. Neither is the grandparent-grandchild exclusion available since the mother of the grandchild is still living. ![]() Such a transfer is considered a transfer from a grandmother to the grandson, and not from the grandmother to the daughter that qualifies for the parent-child exclusion. Thus, there is no exclusion from change in ownership for a transfer of real property from a grandmother to her daughter as a custodian for her grandson under the CUTMA. A CUTMA custodian is not considered the beneficial owner. Therefore, for property tax purposes, an assessor should treat a CUTMA custodianship in the same manner as a trust and "look through" to identify the transferor and the present beneficiary. When property is transferred to a minor's custodian under the CUTMA, a minor has beneficial ownership of the property, and the custodian only has legal title with powers and limitations similar to that of a trustee. When the custodianship terminates, title to the custodial property is transferred to the minor or the minor's estate. A CUTMA custodian holds, controls, manages, and invests the custodial property. The California Uniform Transfers to Minors Act (CUTMA) provides a statutory mechanism for transferring property to an adult "custodian" for the benefit of a minor. Since a minor cannot sell or purchase property held directly in his or her own name, transactions involving a minor's interests in real property are usually conducted indirectly through a guardianship or trust. Under California law, a minor may own real property or an interest therein, but a minor may not convey or make contracts relating to real property. ![]()
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