Legal Question in Real Estate Law in California

Prop 13 and reverse mortgages

How does the prop 13 effect a reverse mortgage when the property is in a trust and the home will revert back to adult children after my death.


Asked on 9/18/07, 3:58 pm

2 Answers from Attorneys
Robert L. Bennett Law offices of Robert L. Bennett

Re: Prop 13 and reverse mortgages

This is beyond my area of expertise.

Mr. Shers seldom gives anything but outstanding advice. Follow his reasoning!

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Answered on 9/20/07, 10:20 pm
George Shers Law Offices of Georges H. Shers

Re: Prop 13 and reverse mortgages

I am not sure, but since when you die your children inherit the property with the basis stepped up to its fair market value as the time of your death, it probably is also reassessed to that value. The savings in capital gains tax should easily exceed the increased real property taxes.

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Answered on 9/20/07, 12:17 am


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