Q: If my dad passes, and house is in trust to me, can i resume the prop 13 property taxes?
My father owns his house outright, and wants to put the house in my name now. First, is this a good idea? The house is in a trust to me in case he passes. Second, if and when I become the owner of the house, can I resume the prop 13 taxes? If I can resume those prop 13 taxes, if I were to sell the house and buy another house in a reciprocal county, do I have to be a resident of that house for a period of time before doing so?
A:
Terrible idea!
If you inherit the house instead of having it gifted, you save a ton of money on taxes. If you inherit then your tax basis is stepped up to the current value; if dad gifts it then you also get his tax basis. That means a huge difference in the taxable gain when you sell.
Under Prop 58 you get to keep the prop 13 benefit that dad has.
I do not know the answer to your last question.
Shawna Murray agrees with this answer
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