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Ray, Lawyer
Category: Tax
Satisfied Customers: 36384
Experience:  30 years in civil, probate, real estate, elder law
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Aunt passed away in june property was held between me and her

Customer Question

aunt passed away in june property was held between me and her with right of survivorship. her share of the property she had it in a living trust with me as her benefactor. do I lose the prop 13 since I have been on title since before she put her share in a trust; and now will I be reassessed property tax wise since there has was no sale and change of ownership. Since I have been on title.
Submitted: 6 months ago.
Category: Tax
Expert:  Ray replied 6 months ago.
Hi and welcome to JA. Ray here to help you tonight.
Expert:  Ray replied 6 months ago.
Here the state considers this a transfer and you will loose the Prop. 13 here and have it reevaluated.Please don't shoot the messenger. Here is what they say.. A transfer can be a sale or purchase, but it also can be a gift or inheritance. Transfers that constitute a change in ownership may occur by any means, including, but not limited to, transfers that are voluntary, involuntary, or occurs by operation of law; transfers by grant, gift, devise, inheritance, trust, contract of sale, addition or deletion of an owner, or property settlement. Payment or consideration for the property is not required. If you look at the web page below you will see that this does not qualify for any exemptions such as parent -child.See item 3 for exemptions.. I appreciate the chance to get you the information you asked for, again please don't shoot the messenger the law is clear here that this is a transfer and unfortunately it does not appear to make any of the exclusions/exemptions.
Expert:  Ray replied 6 months ago.
I wanted to add that it appears you only get taxed on the last half interest you get here from the trust.. Since property taxes are based on the assessed value of a property at the time of acquisition, a current market value that is higher than the previously assessed Proposition 13 adjusted base year value will increase the property taxes. Conversely, if the current market value is lower than the previously assessed Proposition 13 adjusted base year value, then the property taxes on that property will decrease.Only that portion of the property that changes ownership, however, is subject to reappraisal. For example, if 50 percent of the property is transferred, the assessor will reassess only 50 percent of the property at its current fair market value as of the date of the transfer, and deduct 50 percent from any existing Proposition 13 base year value. In most cases, when a person buys a residence, the entire property undergoes a change in ownership and 100 percent of the property is reassessed to its current market value.

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