Tax Benefits of Passing Property to Your Child in California

In the 1970's California voters passed a law called Prop. 13. This law limits the amount of property tax that can be assessed on real property until a new owner takes control of the property. When this occurs the property tax is based on the current property value at the time of the new ownership. Fortunately, if you pass this property onto your child, this rule is exempted.

By placing your real property into a living trust you can pass on your property to your children without having to go through a long and costly probate process and you will pass on your current tax rate to them as well. The heirs will need to file for the exemption within 3 years in order to qualify for the exemption, but the property will not be reassessed under current California laws.

Consult with a professional Los Angeles estate litigation Attorney in order to fund properties into your trust and find out what the tax benefits of doing this can be not only for you, but for your heirs as well.

*This blog entry was not written by an Attorney and should not be constituted as professional legal advice.