California Keep rental property in Living Trust vs LLC

[Simon Lopez]

We have a family home that we are renting out in San Francisco California. It is currently in our parents Living Trust. I asked our Trust Lawyer if we should move the property into an LLC. This is what he said.

" if transferred to an LLC then upon passing the property is no longer transferred from parent to child but from LLC to child. If transferred from LLC to child then the property would be re-assessed at current value and would not qualify for Prop 13 protection. He recommends to purchase more liability insurance."

I never plan on selling the property. When moving from living trust to an LLC is the property re-assessed before putting in the LLC? House was purchased in the 70's id like to keep the 70's sale price.