For many, a manufactured or mobile home is a home. What happens when a California resident dies while owning a manufactured or mobile home located in California?
If the manufactured or mobile home is located on a permanent foundation, the manufactured or mobile home and the land are real property. It is administered like any other real estate owned by a deceased. That is, the title to the real property, the estimated gross value of the deceased’s estate, the deceased’s will or trust, if any, if there is a surviving spouse/registered partner, are each taken into account, the where applicable, to determine who inherits the property and whether probate, or another approach, is required.
However, if the manufactured or mobile home is not on a permanent foundation, it is not part of the land and is personal property. In California, manufactured homes and mobile homes are generally titled and registered with the California Department of Housing Community Development (“HCD”). Some smaller units are titled with the California Department of Motor Vehicle (“DMV”). Like real estate, manufactured or mobile homes can be titled individually, jointly or in trust. Again, title plays a large role in who inherits and how they inherit.
Importantly, California law excludes the gross value of a manufactured or mobile home from the gross value of the deceased’s probate estate when determining whether probate is required. If the total value of the deceased’s real estate and personal property located in California is less than the current probate threshold of $184,500, no probate administration is required for a “small estate”.
Sometimes the main assets of the deceased are their manufactured or mobile home and their land, unless the manufactured home is on leased land, such as a mobile home park where rent is paid.
Additionally, with small estates, if the estimated gross value of all of the decedent’s real estate in California is less than $55,425 (for the decedent’s death after April 1, 2022), the decedent may file an Affidavit of Estate low value real estate and a death certificate with the county registrar to change the title of the lot. Alternatively, a “Request to Determine Estate of Real and Personal Property” in a small estate can be used to change the title of the lot and any other real estate owned by the deceased with a small estate.
When it comes to the manufactured/mobile home, the successors/heirs of the deceased often sell the manufactured home and the land to the same buyer in one sale. If this is the case, the beneficiaries/heirs of the deceased will only have to rename the property in their name (often by affidavit) before they can sell it. The beneficiaries/heirs may deliver to the title company handling the sale a small estate affidavit to claim the net proceeds in escrow with the title company attributable to the sale of the manufactured or mobile home, without the names of the beneficiaries or heirs never appear on title with HCD. This approach saves beneficiaries/heirs the expense, time and aggravation associated with re-title of manufactured/mobile homes with HCD.
Anyone who owns a manufactured or mobile home that is not on a permanent foundation should keep their original certificate of title and registration in a safe place known and accessible to their beneficiaries/heirs. This saves title change fees when the manufactured home is retitled to a buyer’s name or to the name of a beneficiary/heir who retains the asset.
Typically, a California resident who owns a titled manufactured or mobile home with HCD has a small estate and therefore can rely on a will for estate planning. Bank and brokerage accounts may be removed from any probate domain by labeling them as Pay-On-Death (“POD”) and Transfer-On-Death (“TOD”) accounts, as applicable. This is often enough to secure a small estate for someone who owns a manufactured or mobile home and its land, and no other real estate.
The above does not constitute legal advice. Anyone facing the issues discussed above should consult a lawyer for advice. Dennis A. Fordham, attorney, is a state bar certified specialist in estate planning, probate and trust law. His office is at 870 S. Main St., Lakeport, California. He can be reached at [email protected] and 707-263-3235.