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Posted by menomama on April 14, 2007, 12:07 am
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My brother thinks that one must become a "tenant in common"
to keep Prop 13 benefits when one inherits a paid for home
that is part of the family trust.
Isn't there some protection for transfer of property from
parent to child in this case?
Thanks!
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Posted by Stuart A. Bronstein on April 15, 2007, 1:42 pm
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> My brother thinks that one must become a "tenant in common"
> to keep Prop 13 benefits when one inherits a paid for home
> that is part of the family trust.
>
> Isn't there some protection for transfer of property from
> parent to child in this case?
There is a limited exemption from increase in property tax
for real estate transferred between parents and children.
The last time I checked the maximum value that could be
transferred without increasing property tax was $1,400,000,
though whether it was the transferor's home can affect that
number.
When property is disbursed from a testementary trust or a
probate it generally goes to co-inheritors as tenants in
common. But that has nothing to do with either property tax
or a Proposition 13 exemption.
Stu
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by menomama on April 16, 2007, 12:28 am
Please log in for more thread options Thanks Stu, one more question if you don't mind.
Would there be any tax or inheritance advantages to setting
up "tenents in common" with my parents?
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
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<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Stuart A. Bronstein on April 16, 2007, 1:06 am
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> Thanks Stu, one more question if you don't mind.
>
> Would there be any tax or inheritance advantages to setting
> up "tenents in common" with my parents?
I'd really have to know a whole lot more about the situation,
what you want and what you think you want before I could give
you a good answer.
But in general there are no inheritance advantages to holding
title as tenants in common. If you hold title as joint
tenants that can avoid probate. But it can result in higher
estate or income taxes later under some circumstances.
Stu
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by menomama on April 16, 2007, 5:03 pm
Please log in for more thread options Thank you so much for responding!
This situation is that my parents created a trust some years
ago, leaving certain assets to my 3 siblings, and the family
home to me. Home is paid for and under Prop. 13.
My bother told me that he read someplace I might lose the
Prop. 13 status when I inherit, but from what I've read on
line, that doesn't seem to be the case. He thought that if
my parents made me a "tenent in common" I would keep the
Prop. 13 status. Again, from what I've read, that doesn't
seem necessary.
But, my reading also made me wonder if their might be other
tax advantages to becoming a tenent in common?
Thanks again, you are very kind and generous to pass on this
info. to everyone!!
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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