Investor · San Jose, CA · Member since 2016 · 8 posts · 1 vote
Here is the scenario:
I have inherited real property in California. I am the grandchild of the deceased along with 2 children of the deceased. One of the children of the deceased is my father. The trust calls for distribution free of trust in equal shares to the beneficiaries. I understand that I will not be excluded from property tax reassessment as I am the grandchild. There is an exclusion for reassessment for the children only.
Question:
Can I disclaim my inheritance in the property and have my share go to my dad who can then gifts me back my share ?
Then can I potentially qualify for an exclusion under the parent to child transfer exclusion from reassessment ?
Lender · Greater LA/Orange County area, CA · Member since 2012 · 3k+ posts · 3k+ votes
10y
Prop 13 benefits can be retained by filing Prop 58 Exclusion for child and I think Prop 103 (?) for Grandchildren.
Since reallocation of equity is what you wish to do, the better way is to get a fiduciary mortgage to the trust. Borrow up to half the new property value to provide liquidity for any cash distributions needed to balance equities.
Prop 13 benefits can be retained by filing Prop 58 Exclusion for child and I think Prop 103 (?) for Grandchildren.
Since reallocation of equity is what you wish to do, the better way is to get a fiduciary mortgage to the trust. Borrow up to half the new property value to provide liquidity for any cash distributions needed to balance equities.
Search "closeprobate fiduciary mortgage"
I think it is Prop 193. that talks about grandchildren Exclusions. The problem is that the parents of the grandchild must be deceased for the property to not be reassessed when going from grandparent to grandchild.
Not sure about the fiduciary mortgage. There is no probate as this was in a trust. We don't need liquidity for anything right now.
Again, it would be nice to not be reassessed on my 1/3 for property taxes. I think this property has a tax base for assessment going back to the 70's.