In the November 3rd election, California voters approved “Proposition 19”. This new law may dramatically reduce your children’s ability to retain your below market property tax assessment when they inherit your primary residence. This new law may even force them to sell it!
If you pass away after February 15, 2021, or gift your home to your children after that date, the property taxes may go way up, reflecting the full fair market value of the property, unless one or more of your children will actually reside in your home as their principal residence.
Therefore, if you plan to keep your home rather than sell it, and wish to have one or more of your children inherit it, but none will likely live in it as their primary residence, you may want to transfer your home to your children (or better yet, to a trust for them), right away, so they may continue to take advantage of your low property tax assessment.
This type of property transfer has many pros and cons, which you will need to weigh. Plus, it entails a great deal of detailed work that must be handled properly and quickly - - including deed preparation, establishment of a gift trust, completion of a property tax reassessment exemption form, signing and in some cases also notarizing of these documents, and filing and recording of the deed and exemption form before February 15th, 2021.
Due to the urgency and complexity of such a transfer of your home, our firm has arranged for an outside attorney who is more expert in such matters to assist you. His name is Owen Kaye. His initial one-hour consultation is $750 and should you wish to move forward with the transfer, he will quote you a fee for his work (his minimum fee is $12,000, but realize that his fee may be minimal compared to the many tens or hundreds of thousands of dollars this may save your children in property taxes!).
To schedule an appointment with Owen Kaye, please call 310-307-3441 and ask for Carol, and let her know you were referred by Kavesh, Minor & Otis so that she can be sure to get you scheduled with Owen as soon as possible. Owen has limited capacity, so if you are serious about saving property taxes for your children, you should call his office RIGHT NOW.
Do You Need To Speak With An Attorney About Estate Planning?
If you need to speak with an experienced estate planning lawyer please contact us online or call us directly at 800.756.5596 to first register for one of our free, informative seminars. Your attendance will qualify you for a special discount for our estate planning services should you decide to make a free appointment at the conclusion of the seminar and choose to proceed with us. We proudly serve clients throughout California with offices in Torrance, Newport Beach, Orange, Woodland Hills and Pasadena.