Transmutation Agreement
(CA)

Summary

This template is a transmutation agreement, which may be used for California domiciled spouses or registered domestic partners to convert community property to separate property, separate property to community property, or separate property of one spouse or partner to separate property of the other spouse or partner. This template contains drafting notes, practical guidance, and alternate clauses. Transmutations are gifts. Whereas U.S. citizen spouses are entitled to the unlimited marital deduction, counsel must understand and educate their clients concerning the gift tax rules applicable to transfers to a noncitizen spouse or registered domestic partner. For a release of community property interest in a life insurance policy, see Release of Community Property Interest in Life Insurance Policy (CA). For a general planning discussion of planning, see Estate Planning Strategies and Devices (CA).