Property Tax Estate Planning Errors

Recently I have discovered that many so called "estate planning professionals" have neglected to consider Property Taxes and the affects of reassessment upon survivors.

In California, as many people know, the property tax laws we have today were largely the effect of Proposition 13 and its progeny. Proposition 13 effectively capped how high an assessment could grow on an annual basis. This artificial percentage cap did not keep pace with California's rapidly rising real estate market.


Consequently, there are many people, especially older Californians who have lived in their homes for decades, who find that there homes are assessed at 1/3 or 1/4 of the Fair Market Value, even in today's bad real estate market.

Most people do not realize but the death of an owner is considered a "change in ownership" for property tax purposes. A change in ownership ordinarily means that a property will be reassessed all the way up to fair market value, unless the survivors can make use of one of the few "exclusions" in the Revenue & Taxation Code which exclude the transfers from "change in ownership treatment"

The most common Property Tax Reassessment Exclusions are:

• Inter-spousal transfers
• Transfers between registered domestic partners
• Parent-child transfers
• Grandparent-grandchild transfers

Of late I have seen both confusion in the way the Grandparent -Grandchild Transfer works and the failure of a same sex couple to take advantage of the exclusion between registered domestic partners ( by failing to become registered domestic partners to qualify for the exclusion).

ABOUT CHRISTOPHER R. TWINING
Christopher R. Twining, Attorney at Law, based in the Westwood Neighborhood of Los Angeles is an innovative Estate Planning, Probate & Trust Administration, and elder law attorney, who offers in home services for busy and movement challenged clients. The Law Office of Christopher R. Twining serves the cities of Los Angeles, Santa Monica, Culver City, Beverly Hills, West Hollywood, Pasadena, Burbank and the neighborhoods of West Los Angeles, Westwood, Brentwood, Bel-Air, Pacific Palisades, Palms, Pico-Robertson and Encino. Dedicated to helping individuals and couples prepare comprehensive estate plans according to their wishes; he offers them these services at an affordable price, in the relaxed comfort of their homes. For more information about his services, please visit http://www.twininglaw.com or call (310) 492-5990.

CHRISTOPHER R. TWINING
LAW OFFICES OF CHRISTOPHER R. TWINING
1440 VETERAN AVENUE, SUITE 509
LOS ANGELES, CALIFORNIA 90024
(310) 492-5990 Fax (310) 775 - 9774
http://www.twininglaw.com