Legal Question in Real Estate Law in California

There is an exemption from reassessment for a transfer between a parent and a child. Perhaps the documentation was not filed with the assessor's office.

You should check with your attorney, or hire a new one, to look into the situation and see if it can be corrected.

Your question requires access to the documents reflecting ownership and the transfers. While the transfer of real estate from parent to child may be exempt, the transfer of ownership interests in an LLC may trigger reassessment, and there in no parent child exemption from such reassessment. The issue requires a careful review of the reassessment impact, and much more information than you have provided. The first question in a careful analysis of the transfers and the property tax impact under Prop 13. If the analysis is correct that a reassessment is required, a careful review of the property value and the propriety of the reassessment is needed. If rents are so low and restricted the value of the property itself may make the reassessment improper.

You need to have an immediate review by someone with expertise in property tax and the income tax implications of the transfers caused by the death. You may also have a basisi adjustment caused by the death, and need to have the LLC make a IRC section 754 election for the LLC if reporting as a partnership for tax purposes. You need a good tax advisor imediately.

.

Mr. Christian is absolutely correct. You need to talk to a good estate and tax planning attorney in person immediately. In most cases you should have been able to avoid this and may still be able to, but not by asking Q&A on the internet.