Legal Question in Real Estate Law in California
Transfer Taxes and Trusts
We've owned a home as joint tenants for over 20 years and the market value is over twice the current tax appraised value. There are both city and county conveyance taxes for transfers. For two unmarried, unrelated, people, would transferring title to two mutually beneficial living trusts cause a reappraisal? Would it happen at the time the trusts are established, or at the time the first, or second trust takes effect? How can we avoid the huge property tax liability of a transfer to a JT survivor?
2 Answers from Attorneys
Re: Transfer Taxes and Trusts
Transferring title to a revocable trust does not create an event where transfer taxes would be charged.
For the answer to your second question, I would require more information. You also need to make sure your trusts are done properly, and the property interests are deeded properly to the trust.
Please contact my office for further help, if desired.
Ken Koenen
925-924-0100
Re: Transfer Taxes and Trusts
Transferring your property interest to your revocable living trust should not cause a property tax reassessment. As you suggest, you could each prepare living trusts for your assets, including your shares of the home, and transfer those to your respective trusts.
As for reassessment exclusions after one dies, I'm not sure any would apply here, but would have to get more details to be sure.
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