Comments on: Planning for property tax for heirs.

By: Conner

Conner — Thu, 12 Jun 2008 00:38:07 +0000

I have a Client whose mother passed away, and the mother’s property – a residential, single-family home – was in a Living Trust. The property is located in Sacramento County, CA.

The mother had five children. One child was named Successor Trustee. All five children would like the property to be vested in the name of the eldest child, my Client.

Both my Client and I would like to know how to convey the property from the Living Trust to the eldest child WITHOUT being reassessed in the process.

Any advice is greatly appreciated.

By: Annette Williamson

Annette Williamson — Mon, 17 Sep 2007 15:19:20 +0000

My husband and I are relocating to Colorado. We are selling our current home to my sister and her fiance for the valued market amount. We pay around $2400 in property tax a year, can this be transfered over to my sister? Or will she have to pay double the property tax since our home market went up since we bought ten years ago.

By: Gary

Gary — Fri, 07 Sep 2007 15:37:21 +0000

The scenario described where son and daughter inherit the house and one buying out the other triggers a reassessment has happened to my brother. As the article described, this was all set up by an attorney who apparently didn’t know what he was doing.

However there was a bill introduced by Audra Strickland (AB 2799) in 2006 that would have eliminated this reassessment on transfers between siblings. I can not find any information on whether or not this bill passed into law. I assume it didn’t, but does anyone know for sure?

By: Maria

Maria — Thu, 26 Jul 2007 21:01:37 +0000

I am in a similar situation – my parents are both now passed … in their trust they left the house to me and my two brothers (1/3 each). My brothers both have houses and I want my parents’ house. I am getting a loan to buy my brothers out of the house – will the property be 2/3 reassessed? is there a legal way for it not to be reassessed?

By: Justin mcleod

Justin mcleod — Tue, 26 Jun 2007 17:49:10 +0000

My Grandmother is 91 and is going to sell her home. They have a living trus set up where my Father and Aunt are the benificiaries. I would like to purchase the house and want to know if I will be able to take advantage of Prop 13.

By: Tom

Tom — Sun, 17 Jun 2007 10:07:17 +0000

How does the parent child transfer with the property tax effect the step-up basis for capital gains?

By: Bill Jaggers

Bill Jaggers — Tue, 15 May 2007 04:28:49 +0000

10.31.06Planning for property tax for heirs.

My wife and I are close to this situation now and I’m trying to set things up correctly.

My wife’s mother is dying from cancer and my wife & her brother will receive the home. My wife and I will then need to do a loan to pay off her brother and obviously, we want to keep the tax base.

What do we need to do??????

By: Dorie Poremba

Dorie Poremba — Mon, 05 Feb 2007 23:11:19 +0000

I would like to transfer title of my home to one of my four children while I am alive. Will my child be eligible for the Prop 13 exemption?

By: Cheryl McGovern

Cheryl McGovern — Sun, 10 Dec 2006 22:48:10 +0000

I am a wife who got my ex-husband’s share of the house (I had to take out $400,000 in loans to do so) and now see that I will need to die in this house because of the tax consequences if I sell. I’m under Prop. 13 and will leave the house to my son and daughter and would like to avoid the scenario described on the website where the son has to buy out the daughter’s share and this triggers a sale of 1/2 the value of property and raises the property tax so only 1/2 gets the Prop 13 original tax rate. How do you avoid making this mistake????

Thank you,
Cheryl McGovern

By: gbroiles

gbroiles — Mon, 04 Dec 2006 15:11:40 +0000

If this is California property, no problem – that will be a spouse-to-spouse transfer, which is exempt from reassessment.

Your wife should be aware that she’s setting herself up for an unpleasant income tax result, though, if she sells the house in the future.