Legal Question in Wills and Trusts in California
Joint Tenancy with grantor reserving life estate
My mother, sister and I were granted joint tenancy on my grandmothers property in 1970 with her reserving life estate. She passed away in 2001. Shasta County reassessed for propery taxes in 2001. Shasta Co. (Prop 58/193 Parent child-grandchild transfer reappraisal exclusion) says this law excludes transfers between parents and children from reappraisal. And grand children for the first 1,oooooo cash value. Property is not even close to that amount. My mother granted her 1/3rd to my sister and I in 2005 and Shasta Co reassessed again. In 2006 I bought my sisters 1/2 and now Shasta Co. is reassessing. I have asked for a informal review. I need to know if I should just file an appeal. A appeal has to be filed by Nov. 30. Shasta County has treated this as a transfer of ownership since 2001. They have several different explanations for why they have reassessed: Your grandmother can not give it to you if your mother is alive and Because it was a life estate are just a few. I have asked if it was reassessed in 1970 when the actual transfer occured and have never had any responce. How can they reassess something in 2001 that happened in 1970?
1 Answer from Attorneys
Re: Joint Tenancy with grantor reserving life estate
The possessory interest transferred when your grandmother died. That is why you received a step up in basis as of that time. This is a huge benefit, since if you sell the property, your basis for tax purposes is the value of the property at the time your grandmother died, your grandmother's basis.
Appeal it if you want, but the income tax benefit of the life estate deed is huge.
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