I'm not an attorney but I've been in the title industry for over 10 years now. I've seen too many times where people have tried to give property to their children and forget to put just some vital information on the deed. Since California taxes are 1% of your assessed value (since you have bought the home) after the proposition 13 passed. Your taxes can only go up 1% a year, every year until you sell the property or do major construction, i.e. add a pool or sunroom, something like that. So if you were to deed it to your children in the wrong fashion they would be looking at a significant increase in property taxes (5,000/yr plus all of the special taxes, assessment, mello roos, etc.). I have several forms of deed, not the cheap ones you pick up at Staples or OfficeMax. The key is you have to base it on R&T 11911 which is a parent to child transfer, as well as filling out the PCOR (Preliminary Change of Ownership form) this ensures the assessor that you are transferring title to your children and not trying to save someone money on their tax bill. I hope this is helpful to you...
Best of luck to you.
Please consult a CPA immediately. Also a real estate attorney. You do not want to make a misstep in this complex question. The wrong answer wll lcould cost you.
Also, there are issues with quit claims regarding the fidelity of title that could cause your children problems when they try to sell the property.