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> Under Prop. 19, the parents’ tax basis does not pass to the child. However, if the home is the inheritor's primary residence for at least one year after the
by mavelikara 3y ago
> Under Prop. 19, the parents’ tax basis does not pass to the child. However, if the home is the inheritor's primary residence for at least one year after the property transfer, they can apply to have up to $1 million of the home's value not reassessed. If the home is worth more than $1 million, anything over that amount would be reassessed. Even with this exemption, inheritors are likely to see a substantial increase in annual property taxes, amounting to thousands or even tens of thousands of dollars, Button said.
Kids inheriting property need to pay property taxes, just like their new neighbors. Move on please, nothing to see here.
- erkt 3y agoTrusts complicate this.
- secabeen 3y agoOnly slightly. Most trusts that hold homes dissolve and grant the property to the declared beneficiaries when the last trustor dies. The Rule Against Perpetuities means that all trusts must end within a specific time after the death of the last trustor; you can't have your parents put a house in a trust, inherit it at age 50, then keep it in that trust and live in it till you reach 100. The trust must be dissolved within the deadline, which makes it not worth even trying to extend it that way; the standard living trust that most people get dissolves and distributes the assets to the heirs when the second of the two parents dies.