Avoiding Tax Increases on Transfer

When transferring real property, many people are leery about the potential assessments and tax implications of this transfer. This is because upon the death of the property owner, the inheritor could face unnecessary estate and gift taxation. Specifically, for California residents this death creates a CIO (Change in Ownership). This change almost always results in increased property taxes.

Proper Estate Planning Can Help With This Estate Tax Issue

However, if proper estate planning is completed ahead of time, then certain exclusions can help avoid a tax increase on transfer. If you are interested in learning more about these exclusions and estate planning tools that can help with this issue, talk to our seasoned attorneys.

Based in Chula Vista, California, the father-son law firm of Green & Green LLP provides comprehensive estate planning, estate administration and probate counsel. With more than three decades of experience, we have extensive knowledge when it comes to the specific tax exclusions that could apply to your real property transfer upon death.

What Potential Exclusions Are There That Could Help Minimize a Tax Increase?

Under California law, a CIO triggers an increase in property taxes. How does this happen? The event or CIO means the property must automatically be reassessed to the current FMV (Fair Market Value).

There are specific exclusions under California's tax code that can avoid this tax increase. Some of the exclusions include:

  • When parents leave their children real property (primary residence)
  • When parents leave their children other real property valued at up to $2 million (married parents)
  • When a spouse or domestic partner leaves the surviving spouse or domestic partner real property
  • When a child's parents are deceased and the grandparents leave them real property

Keep in mind these are just some of the exclusions and are generalized points. The tax code and exclusions in California can be complex. For more information about the exclusions and to get help for your specific situation from one of our dedicated lawyers, we invite you to please reach out to our law firm.

Schedule Your Consultation Today

We encourage you to schedule an appointment with us today. You can reach us onlin or you can also call 866-540-1466. Our attorneys understand that taxes on property transfers upon death are a complicated issue, and we are here to assist you in creating an estate plan that can help with your personal situation.