By Stephen C. Ross, Esq.

Gifts of real and/or personal property may be used to achieve estate planning goals and minimize death taxes. However, in California, a married person cannot make a gift of community personal property, or dispose of such property for less than fair and reasonable value, without obtaining the written consent of the other spouse. Community real property, with the exception of short-term leases, cannot be transferred or encumbered by a spouse unless the other spouse joins in the deal. Written spousal consent should be obtained for gifts made to children and others under the California Uniform Transfer to Minors Act.

One exception to the spousal consent rule is that neither written consent nor joinder is necessary if both spouses make a mutual gift to a third party, or one spouse makes a gift of community personal property to the other.