Posted on: 07th Jun, 2010 11:06 pm
I live in California, my father and aunt own a rental property (no mortgage). My fathers half is in his living trust. My aunts has no will or trust and wants to give her half to my wife and I now and continue to live in one of the units until she passes. My father does not want the property tax to go up and says we should pay the difference. What is the best way to transfer the property over to us with minimal income tax and property tax implication. My father also wants to quit claim his half to us now also, once we transfer my aunts half.
Thanks
Daniel
Confused in SoCal
Thanks
Daniel
Confused in SoCal
Hi dlddvega,
As your aunt as well as your father both want to transfer the property to you, then your father will have to remove the property from the living trust. Both of them can then sign a quit claim deed and transfer the property to you. Once a property transfer takes place, the tax department will assess the value of the property for taxes. If it is a gift transfer, then your father and aunt will be liable for paying the gift taxes.
Take care.
As your aunt as well as your father both want to transfer the property to you, then your father will have to remove the property from the living trust. Both of them can then sign a quit claim deed and transfer the property to you. Once a property transfer takes place, the tax department will assess the value of the property for taxes. If it is a gift transfer, then your father and aunt will be liable for paying the gift taxes.
Take care.
Will the the proerty have to be reassessed since half of the property is a transfer between parent and child (Los Angeles County Prop 58). Will it be better to add myself on the tiltle so we would all be "joint tenants with rights of survivorship". If I do this what tax implication are there. Does the property get reassessed with a title change.
Thank You
Thank You
Welcome back dlddvega,
As far as I know, the property will be reassessed when there is a change is property ownership. It is a good option to add yourself to the property deed as joint tenants with rights of survivorship. Upon the death of your aunt and father, you will become the owner of the property. You won't have to give any share of the property to other heirs.
As far as I know, the property will be reassessed when there is a change is property ownership. It is a good option to add yourself to the property deed as joint tenants with rights of survivorship. Upon the death of your aunt and father, you will become the owner of the property. You won't have to give any share of the property to other heirs.