Taxes

[pjcar41]

What is the name of your state (only U.S. law)? CA

My dad passed away 2 days ago and my mom 3 years ago

The house is in a family trust I am the only one left

The home is under Proposition 13 I was told as long as the home stays in the trust I can pay the same tax rate from Proposition 13 is that correct?

 

[TrustUser]

the trust document is what is gonna determine whether the home stays in the trust or not

i live in california, so i have a fair amount of knowledge

unless rules have changed, if a family member inherits the house, it is able to stay under the old assessed value, and has nothing to do with it staying in trust or not

there are certainly other ramifications if the property is taken out of trust, but i do not think that prop 13 is one of those ramifications ?

i would think that most tax preparers would keep up with those rules

so if you use someone to do your taxes, you might ask them for their opinion

 

[NIV]

What do you mean by "family trust"?

 

[Zigner]

When the ownership of the property changes (ie: from the trust to you), you will have to fill out a form that notifies your county of the nature of the transfer so that the county knows not to reassess the property. In Los Angeles County, the form is called "Claim for Reassessment Exclusion for Transfer Between Parent and Child."

 

[NIV]

By the way pjcar41 wrote, there may have been other beneficiaries in the trust. If the estate planning had the usual (before the recent changes in estate tax law) AB format, the residence may have gone into the irrevocable trust portion that may have some beneficiaries that would not be excluded. If the trustee had a sprinkle power, the entire residence would not be excluded.

I understand there are a few "may"s in there. But, they are not unusual facts for the way some might have set up a living trust arraignment. Before advising someone submit something that will be signed under penalty of perjury, I'd think more facts would be needed.

 

[pjcar41]

Thank you

Thank you all for the info

 

[TrustUser]

When the ownership of the property changes (ie: from the trust to you), you will have to fill out a form that notifies your county of the nature of the transfer so that the county knows not to reassess the property. In Los Angeles County, the form is called "Claim for Reassessment Exclusion for Transfer Between Parent and Child."

if i recall, this needs to occur within a certain timeframe of the death of the grantor, even if the property stays in trust

i realize that there is not much of a way for the county to know that the grantor passed

but when the grantor died, the beneficial ownership changed, and i think that it is at that time when the clock starts ticking