Own a home with sibling and proposition 13. Buyout

[stacy lynch]

Jurisdiction

California

I own a home with my sibling at 50% tenants in common. When I buy her out her 50 % of the home will be reassessed. The house is worth almost 900k. Right now its only assessed at 119,000 due to our parents and proposition. Parents are not on the deed/title. Any way to buy her out and her 1/2 not be reassessed by the property tax assessor? I was told to put the house in a trust. Any advice is appreciated.

 

[zddoodah]

Any way to buy her out and her 1/2 not be reassessed by the property tax assessor?

Maybe (but note that, if the property is reassessed, it won't just be her half that will be reassessed - it will either be the whole thing or none of it).

I was told to put the house in a trust.

Told by whom?

Any advice is appreciated.

Consult with a local real estate attorney.

 

[stacy lynch]

Maybe (but note that, if the property is reassessed, it won't just be her half that will be reassessed - it will either be the whole thing or none of it).



Told by whom?



Consult with a local real estate attorney.

I have consulted with a real estate attorney and the accessors office only my 50% will be reassessed at fair market value. That is because my ownership will stay on it

 

[army judge]

I was told to put the house in a trust

If the home is placed into a trust, before you buy her out, it'll make things going forward easier for you.

I suggest you hire yourself a GREAT (not just good) estate & trusts attorney.

To do that, interview and vet at least three, then select one.
If you know one, maybe that's the one you retain.

 

[stacy lynch]

So if the house is put into a trust and I buy her out it the house wont get reassessed? I have been told it will. I have talked to about dozen real estate attorneys/trust attorneys

 

[army judge]

So if the house is put into a trust and I buy her out it the house wont get reassessed?

What anyone tells you here, you need to hire an attorney to make sure you are proceeding correctly.

First of all, no one can guarantee you that some unknown tax assessor won't increase your taxes.

Your estate or trusts attorney that you will hire will be in a better position to advise you, because he or she will know what local officials do.

He or she will know how a trust can benefit you best.

You live in a state that is greedy and confiscates the assets of the HAVES to dole out to the many HAVE NOTS.

I have talked to about dozen real estate attorneys/trust attorneys

If you think a trust will help you achieve what you desire, you'll now need to hire such an attorney and direct her to create the proper trust that will make sure your needs are met!

 

[zddoodah]

I have consulted with a real estate attorney and the accessors office only my 50% will be reassessed at fair market value. That is because my ownership will stay on it

That doesn't make any sense. Does the assessor send you and your sister separate bills for 50% of the property tax? I've never heard of a county assessor doing such a thing. Property tax bills are sent out on a parcel-by-parcel basis. How would the assessor increase the tax on part of the property but not another part? In what county is the property located?

So if the house is put into a trust and I buy her out it the house wont get reassessed?

It is possible that, if you create a revocable trust and transfer title to the trust, you can (legally) avoid reassessment. You and your sister can then negotiate for you to buy out her interest in the trust.

I have talked to about dozen real estate attorneys/trust attorneys

And so now you're consulting with anonymous strangers on the internet?

The exemptions to reassessment are found in section 62 of the Revenue and Taxation Code. Take a look and decide for yourself.

 

[stacy lynch]

No it is one tax bills. I acquired my 50% years ago from my mother, so my 50% interest is safe with prop. 13. The house will be reassessed when I buy her out but 50% of the value of the house will only be taxed yearly. RIght now the house is worth about 850k but our yearly tax bill is only taxed on $119k that is due to proposition 13 when my parents bought it. Yes its confusing. I have consulted with several real estate attorneys. They have told me there is no getting around being it when I buy her out since there is no sibling exemption.

 

[stacy lynch]

How to keep a low Proposition 13 property tax when you transfer property in California


link above