San Jose, CA asked in Estate Planning, Real Estate Law and Tax Law for California

Q: Does the tax basis change when you inherit a house that was in a trust?

The house is currently owned by the trust. My mother is the trustee and I am to get the house upon her death. I have a copy of the trust and will. Can I put the title in my name without increasing the tax basis of the house?

2 Lawyer Answers
Richard Samuel Price
Richard Samuel Price
Answered
  • Estate Planning Lawyer
  • Redlands, CA
  • Licensed in California

A: I believe that you are talking about the assessed value for property taxes. A transfer of a home from parent to child can be excluded from reassessment for property tax purposes. For the primary residence, there is an unlimited exclusion. For all other property, the exclusion is limited to the first $1M of value. You must file an application for the exclusion with the tax assessor within three years of the transfer.

In short, that means that the property taxes should remain the same.

Zaher Fallahi
Zaher Fallahi
Answered
  • Estate Planning Lawyer
  • Los Angeles, CA
  • Licensed in California

A: I believe Mr. Price has provided you with a great answer. The information presented herein is for general purposes only. It is not intended to, and may not be construed as legal, tax or accounting advice. Neither is it intended for solicitation purposes. For specific advice, please consult an appropriate attorney in person. Good luck. Zaher Fallahi, Estate Planning and Tax Attorney, CPA.

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