Q: Transfer home from grandma, to dad, to me without prop tax impact in CA?
Was planning on purchasing the home but wanted to figure this out first. Would it be possible for grandma to transfer deed to dad, then dad to me, all at the same time to avoid reassessment? Would I then be able to cash-out refi to pay grandma the amount I would have paid for the home?
The benefit would be the lack of tax reassessment. My dad is still alive so grandma can't pass directly to me.
A:
You really need to hire a Real Property attorney in your local area to assist you with this because of the complexity of what you want to do and if you mess it up, it could cost you thousands in taxes on capital gains and increased property taxes going forward for years to come. You have too many legal issues that require expertise and experience to do this yourself. Would you do your own kidney surgery? This forum is not designed to provide specific legal advice, read the disclaimers below.
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Steven J. Fromm agrees with this answer
A: You will want to talk to an estate planning and/or a tax attorney that can explain the process and tax consequences. This is not something you will want to try without an attorney.
Steven J. Fromm agrees with this answer
A: This may not be a good idea. If you obtain the real estate by gift you do not get a step up in basis to the date of death value of the real estate. As a result, the best course of action would be for your grandmother to transfer the property to you via her will. This is a very common mistake that the unformed make and end up with a bad tax result. To understand this more, please read my article The Biggest (Tax) Loser: Misguided Gifts of Real Estate By Uninformed Do It Yourselfers, Realtors & Attorneys at the following website address: https://sjfpc.com/2014/01/10/the-biggest-tax-loser-misguided-gifts-of-real-estate-by-uninformed-do-it-yourselfers-realtors-attorneys/
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