Can you change the name on the title of a home without penalties?

[Giuseppe Rosellini]

A family member wanted to change the title of ownership on a home in CA without penalties in order to sell the home and move. As far as I know there are penalties that come with this, any advice? for context, the person whose name is on the home is deteriorating in terms of mental health and originally bought the home for my family member to take primary residence in. The home is in a trust and has accrued quite a bit of equity, but a transition now would be ideal. I am quite new to this asset class and would appreciate any help or education, thank you. 

[Andrew Crinnion]

I would consult your CPA, if the house is gifted (while they are alive) to someone else then the recipient no longer receives the step up in basis. Meaning when the recipient later sales the house they will have a higher tax bill. For example, person A buys a home back in 1950 for $50,000 today that home is worth $1,050,000. If this home was gifted to person B while person A is alive, then person B's basis in the house will be $50,000 so when person B goes to sell they will have a $1.0m taxable gain (assuming no improvements). Instead if the home was inherited by person B, person B's basis in the home would be the market value at date of inheritance in this case $1,050,000. If person B sold it the next day for $1,050,000 they would owe no tax.