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Hi and welcome to Just Answer!Generally a revocable living trust is ignored for income tax purposes. A revocable living trust is generally created to manage and distribute property. Many people use this type of trust instead of (or in addition to) a will.Because this type of trust is revocable, it is treated as a grantor type trust for tax purposes. A trust is a grantor trust if the grantor retains certain powers or ownership benefits. In general, a grantor trust is ignored for income tax purposes and all of the income, deductions, etc., are treated as belonging directly to the grantor.So far - if you transfer the property from your own revocable living trust to the joint living trust which you have with your spouse - that will not be a taxable event and will not generate any taxable income.However - because you are in California which is a community property state - that might result a conversion of your separate property to a community property - and all income realized from that property will be treated as a community income.That will only affect your tax liability if you file separate tax return. If you file a joint tax return - there will be no effect.
Upon transferring the asset from a revocable living trust, solely owned, to a joint trust, owned by a married couple, what, if any, are the implications of that said transfer. As far as reassessment and transfer tax or placing an person on title that before the transfer did not have an ownership stake i the property.
Such transfer will be classified as a transfer between spouses and will not trigger reassessment or transfer tax.Because the title is issued to a revocable living trust - the property is treated as owned by you personally. So after transfer - it will be treated as owned by you and your spouse (assuming a joint AB trust). Thus there will not be any transfer tax and such transfer should not trigger reassessment. But you might need to provide ownership documents to the county office.