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If a child buys a home from a parent, the other 50% would be considered a gift. Also, the assessor uses “fair market value” not nominal sales price when determining assessment. There's several other considerations, which we can cover in a 1-1 consult if you do not already have a lawyer and are seriously considering a sale. Please consider reaching out! www.cunninghamlegal.com/california-law-offices/contact/

I am not sure what you mean by your question. If a surviving spouse who has elected portability and picked up DSUE (deceased spouse’s unused exemption) remarries, that portability is lost. Is that what you mean?

Thanks for the comment!

That is very disappointing to have an executor steal money. That is the purpose of a bond. The bond is typically filed with the court. This should be available to the public - including you. You might be able to access this online or may have to go to the courthouse. It depends on which court and what their process is.

Typically, a Living Trust only becomes irrevocable when one or both of you die. Since you are both living, it is likely that your “living trust” is a revocable trust. You should be able to put a checking account into a revocable trust. But, please check with your attorney to confirm if it is a revocable or irrevocable trust!

@@CunninghamLegal thanks for replying, it's irrevocable since we only have 1 child that is special needs.

I would recommend that you consult an attorney experienced in Prop 19 and Trust Administration immediately. This is something that we can assist with if you don’t already have legal counsel. The big issue here is that you have stated the trust leaves the property to you but that you won’t live there as your residence. Given these facts, the property will likely be reassessed. However, if you brother owns (in trust or otherwise) at least a partial interest in the property under the terms of your mom’s trust, it may be possible to avoid reassessment under these facts. Sometimes people conflate being a trustee of a trust with being a beneficiary. A trust can be written in a way so that your brother is the full or partial “owner” of the property for property tax purposes, but you as trustee totally control the property and your name is on the deed. This can be very confusing for people who aren’t familiar with these arcane rules. Again, this is something that you should review with a lawyer immediately. www.cunninghamlegal.com/california-law-offices/contact/

Thank you for your comment. Without further information and documentation (like the Title), I cannot answer your question.

Many retiring Californians choose to move to places like Texas, Idaho, Tennessee, Florida, Arizona, Oregon, et cetera, for the reasons you mention here. Others stay in California for the reasons we cover in the video. The choice is yours!

Unfortunately, this is not uncommon. Is this in California? I know that Florida is having the same insurance issues as well.

@@CunninghamLegal yes Kali. Trying to sell my house and buyers are getting scared with all the costs

If Dad dies in 2024, $13.61M exemption (assuming no prior taxable gifts from Dad). Dad can file for “Portability” and pick up Mom’s “Deceased Spouse Unused Exemption Amount” (DSUE). The law is scheduled to sunset at the end of 2025 so that in 2026 the $13.61M Exemption goes down to about $7M.

Hi, thank you for letting us know you contacted us and are still waiting to hear back. We are looking into this. Would you please call our Client Services Supervisor directly at (530) 392-4270?

​@@CunninghamLegalCan you slow to Turtle Safe Speed when the Legalese Administration Lawyers Prebate Nickel and NICER Probate Dime complete administration replaces the easy to forge plan English Estate Plan in a few months. We want 5-Star services to avoid the Plain English Estate Plan forgers counterfeiters and Trust Litigation Quarter?

Thank you! We are working on it by posting videos every Thursday at 6pm PST. Please subscribe to our channel for more estate planning information: czcams.com/users/CunninghamLegal

There is not enough information to answer your question. Generally speaking, if a parent died before February 15, 2021, the prior law (Prop 58) applied that exempted the family home entirely from reassessment. However, it depends on the terms of the trust. If the trust leaves the home to just the children, that’s a good thing. If the assessor has not contacted you YET, another good thing. Your family needs “trust administration” right now. Do not delay. You should speak with an attorney about this. If you are not represented feel free to reach out to us. It MAY not be too late. On the other hand, depending on what has happened after death, there may be partial or full reassessment.

Wow, thanks! I'm happy to help educate.

The Internal Revenue Service (IRS) classifies Bitcoin as property for tax purposes. This includes both income, capital gains and estate tax purposes. Bitcoin transactions are treated similarly to transactions involving other forms of property. Think of stocks or real estate. When Bitcoin is sold or exchanged, it is subject to capital gains tax. If it is used as a currency in exchange for something (buying a watch for example) the IRS views that as a “sale” and the sale of the Bitcoin in exchange for the watch is subject to capital gains tax.

@@CunninghamLegal yes. My observation is that most people have to risk their savings in uncertain investments or watch it disappear due to inflation. Bitcoin allows one to save in terms of value. Some of the typical dispositions of estates will be wrecked by hyperinflation.

Glad you enjoyed it! There's a lot more to consider when it comes to where you live other than how much it costs.

It depends on when the “change in ownership” (if any)occurred. This is dependent upon the terms of the trust, as written. Without more information, it is not possible to answer this question. You can contact us and we can review it for you: www.cunninghamlegal.com/california-law-offices/contact/

@@CunninghamLegal Thanks for the prompt reply. The trust is still in limbo with a fiduciary trustee. DOD was April 2023 of estate owner(Mom). Two sibling beneficiaries. The property in question had an "appraised valued" at DOD 200k more than the residual trust value(two properties and cash) but specifically exempts the specific bequeathed bennificary of the rental building(lets call him sib "A") from equalizing any difference to the residual. In the trust assets there are two other properties, one the former estate owner's(Mom) residence and a second home (that "B" lives in currently sans rent) that is specifically bequeathed to the second beneficiary(sib "B"). Additionally the trust dictates a specified monthly annuity($6K) for only one of the beneficiaries(sib "B" - and they are not happy about that) That property has already been "dispursed/given" to beneficiary("B") obstensively to help(the trustee's words) fund the annuity due to inseficiant funds in the residual trust monies to purchase the specified 6k per month annuity. Questions of unequal distribution prior to a bilateral agreement are in play. Dispute re: trustee fees also, just to throw additional complexity into the mix though the trust makes no mention of division of trustee fees between benificaries. No agreement has been signed between the benificiaries. I will set up a consultation. Thank you so much.

Thanks for sharing! We'll keep that in mind for the next video.

This is typically especially true if a mortgage is in the mix.

I’ve been hesitant to jump in because of the volatility, but the tax benefits are tempting. With all the talk about energy independence and new drilling projects, it feels like it could be a good time to explore these investments.

This is all true and that is why it makes sense to look at this on an individual basis. What is a good fit for one person might not be a good fit for another.

I'm glad you enjoyed it! California's programs for seniors that can be incredibly helpful.

I can understand where you're coming from with your concerns for cost. We actually have an article on strategies for helping your child buy a house that I would suggest you read: www.cunninghamlegal.com/how-to-help-a-child-buy-a-house/

Sell your property then and live in an RV.

​@@joshn2342323 Wrong answer.

Property taxes ARE real and you are correct - if you don’t pay then you lose your property.

It will change- the TCJA of 2017 is set to sunset.

Prop 13 is still the law of the land. You might be thinking about Prop 19 which gave some property owners more flexibility in transferring their Prop 13 taxes to a replacement residence. Prop 19 did take away the broad parent-to-child reassessment exclusion. You can watch one of our recent videos on Prop 19 here: czcams.com/video/gPZQonQM8rI/video.html

Thank you for your comment. This certainly has gotten more confusing for taxpayers…and frustrating.

What if the transferred property is an income property(multi unit apartment) and it is a specific bequest from the parent’s irrevocable trust? Can the basis be kept from the parent?

@@ocavant Under Proposition 19, if a multi-unit apartment building is transferred from a parent to a child, the portion occupied by the parent and then by the child as their principal residence falls under the Prop 19 property tax reassessment exclusion rules. However, any units not occupied as the principal residence by the child will be reassessed at current market value. Thus, only the part of the property that qualifies as the child’s principal residence avoids reassessment, while the rest is subject to new property tax calculations. Also, if the value of the parent-occupied unit is more than $1M or $1.022M greater than the assessed value, the property will be partially reassessed to the extent of the overage.

@@ocavant Mr. Cunningham gives a good synopsis. Remember the core that I addressed...the HOX. The parent had to live in a dwelling and received a HOX, the child thereafter w/i 1 year has to occupy and receive a HOX. You can only have 1 HOX.

@@CunninghamLegal Remember too that part about current market value...it's always now lurking in the background and any event that causes the removal of the Exclusion will cause it to be enrolled at its trended base.

This prop covered two issues and That is illegal

Awesome, thank you very much!

That's awesome! Thanks for sharing.

@@CunninghamLegal watching your distribution vid

We are doing another webinar this week on oil and gas. You should join us!: www.cunninghamlegal.com/maximizing-tax-incentives-qualified-opportunity-zones-and-oil-gas-investments/

Generally, it is where you live (residence) that determines state death tax, as well as presence of property in that state. Sometimes “intangibles” are excluded from property. This means that if a California resident owns a commercial property in Washington State, if the property is held by an LLC and not in that individuals name (or their trust), it may be possible to avoid Washington State death taxes.

When it comes to debts, the rules are different among the states. California tends to be more creditor friendly than other states. Each of us needs to evaluate our individual needs when deciding where to retire. This includes debts as well. Thank you for your comment!

This is a good question, and thank you. The rules aren’t clear, but we know that if the owner no longer qualifies for the Homeowner’s Exemption, that means that the owner of the property would lose the parent to child reassessment exclusion and the taxes would go up.

DePalma Do you mean airbnb to bring in income so the heirs can support the higher property tax while living in it as the primary residence? "Airbnb a bit each year" just enough to cover the increase in property tax.

California voters voted for this change. If you don't like it, you're free to sell your property at the market value and take your money to another state. Also this does nothing to change rents. Landlords ALWAYS charge rent at the market price.

You have correctly identified that passage of Prop 19 has many unintended consequences. Thank you for your comment.

@@CunninghamLegal thank you for the video for your response… Do you by chance know if anybody is suing the state of California to have this revoked, repealed or to be voted on again?

@@DePalma. There may have been a lawsuit filed after Prop 19 was passed but its been a few years since we have heard anything about that case.

This prop covered 2 issues and that is illegal

Yeah, I’ve been digging into it too. The whole thing is a bit confusing, though. It seems like there are some big loopholes, but I’m not sure how to take advantage of them.

I was reading that Prop 19 can make it harder to pass down property without getting hit with a huge tax bill. My parents’ house is a big part of our family’s financial plan, and I’m trying to figure out how we can keep it without the taxes going through the roof.

That’s what I’m worried about too, Mike. My folks bought their house ages ago, and with Prop 13, their taxes have stayed low. But now with Prop 19, if we inherit the house, the property taxes could skyrocket. It’s making me wonder what our best move is.

I’ve heard there are some strategies to keep the tax benefits, but they’re pretty specific. If you don’t handle it right, you could end up losing the protections of Prop 13. It’s a lot to think about, especially with all the fine print.

There can be some strategies, like the ones covered in this video. But, you will need competent legal counsel with experience in this area of law. Please see a lawyer before attempting any strategies.

Glad to hear that!