Legal Question in Real Estate Law in California

Re: Taking title to Real Estate to reduce death tax

I'm with Mr. Starrett in not knowing enough about estate planning and gift taxes to be of much use to you. Possibly there is another category on LawGuru other than real estate that would produce knowledgable answers, such as tax law or estate planning.

I would also respectfully point out that a couple this wealthy should invest a couple thousand dollars to have a personalized and very competent estate plan drawn up for them by a topnotch specialist in that field.

Finally, the one aspect of your question that I feel semi-competent to comment on is the notion of a life estate with their children as beneficiaries. This is mixing terminology. If you mean a true life estate, the children would be remaindermen, not beneficiaries, and this would probably be tax-treated as an inter vivos gift, with bad tax consequences. If you really mean to make the kids beneficiaries, you are probably thinking of a trust, probably a revocable living trust (although serious estate planning for millionaires encompasses looking at several more complex forms of trust).

Just as cardiologists don't deliver their wives' babies, real estate lawyers have estate-planning specialists do their wills and trusts. Your clients need the advice of a specialist.

Re: Taking title to Real Estate to reduce death tax

No it would not. Why are these people not getting competent Estate Planning Advice from a Certified Specialist Estate Attorney?

Re: Taking title to Real Estate to reduce death tax

I don't know enough about estate planning or the tax issues to give you a direct response. However, a big unknown in this equation will depend on what Congress does with the estate tax all together. There is talking of eliminating it, but this could also revert back to the prior law when the current reduction expires.