ACT NOW if you want to keep property in your family (Bad News about Prop 19)

December 4, 2020 / Trusts and Estates / By Martha Patterson


I know there was a lot going on this past election, and you probably don’t remember which propositions was which. Proposition 19 changed to the property tax rules.

There is some BAD NEWS.

The parent-child exclusion is now severely limited. What does that mean? To eliminate the legalese, I will explain it as simply as I can. You probably remember Prop 13, which made sure property taxes did not go up as fast as property values. Older properties have lower assessed values than actual values (thus lower property taxes). A property may have a current assessed value of $200,000 and a FMV of 2,000,000. Under Prop 19 the annual tax bill when property passes from parents to children can go from $2,400 to $24,000! Over 10 years, that’s $216,000! Its not a problem if the kids intend to sell the property immediately, but bad news for kids who want to hold on to the property. So, if you have property that has been in the family for a long time and want to keep it in the family you need to ACT NOW! If you want to protect the property, you will need everything done and recorded before February 11.

If you have property you want to keep in your family, CALL 866-452-9657 TODAY so we can set up a meeting to discuss your situation, we will be meeting by phone and zoom, and if I can help you, I will devise a plan for you and get started right away. Don’t worry if my office is not close, I am working remotely, and your signing will be set up so it is convenient for you.

Martha


About the Author Martha Patterson

Martha Patterson is a California Certified Specialist in Estate Planning, Trust and Probate Law, and Certified Elder Law Attorney by the National Elder Law Foundation. She focuses on Elder Law, Asset Protection and Estate Planning. She is a Member of NAELA; Past President of Southern California NAELA. Featured on CNN, Good Morning America, NBC, ABC, CBS, Fox News, and radio stations KABC, KNX, and KKLA. She overcame incredible objections and enabled Kerri and Julie Kasem to visit their dad radio host Casey Kasem. She is a frequent lecturer for NBI, and is a at MCLE events, and public forums.

Martha Patterson, Attorney

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