However, i know that there are many cities within California that prohibit or heavily tax Airbnb's.

As always make sure to understand what your investing in, tax consequences and terms of the offering

>> Will there be any tax implication?

We have filed jointly and separately, depending on which way our taxes are the lowest.

If you're concerned about the tax implications, definitely talk to an accountant well versed in real estate to go over your options.

Title insurance should also reveal if the trustee has this ability.To clarify, if a trust names someone who is deceased as a beneficiary, the trust would then name someone else, or would name their estate (the reasons behind forming trusts in the first place would seem to indicate that it would be another person, since their are tax benefits and probate avoidance).  

@Roger MatthewsHomestead laws and the Homestead exemption for property taxes have nothing to do with each other. 

For Tax Return 2022, it is my first time I need to pay tax to IRS ($269).

Or you have to make some lifestyle changes to take full advantage of it (e.g. real estate professional tax status). 

Bu equally important that the seller is current on their property taxes.