Q: Hello, my question is about how I might be affected by Prop 19 in Southern California.

A: you need to speak to a trust administration attorney. if your parents already passed, the trust itself governs the transfer of properties and given your stated dates, you may not be subject to prop 19 but you need to speak to an attorney regarding the specifics to know your options.

A: There is no exclusion from reassessment for sibling-to-sibling transfers.

You should consult with an attorney to see if the trust would allow the house to be distributed to you alone and other things of equal value to be distributed to your sister alone.

Another more complicated option might be for the trust to take out a mortgage against the house for half of its value and then transfer the encumbered house to you alone and the loan proceeds to your sister.

These techniques should not be attempted without the assistance of skilled legal counsel. These are not do-it-yourself projects.

A: The distribution of trust assets are controlled by the language of the trust. A lawyer would need to read the terms of your particular trust to be able to answer your question. However, I can say that the property does not need to be your primary residence if the deed transferring the property to you is recorded by February 11, 2020. [The Assessor's Offices are closed February 12-15, so it pushes back the filing deadline.] Some counties are allowing people to have the deeds notarized by February 15th and recorded afterwards, but I cannot say that that method will be acceptable everywhere. Finally, if the deed is notarized and recorded after February 15, 2021, you would definitely need to move into the property and make it your primary residence in order to have any shot at saving property taxes. Best wishes.

A: Very good and thoughtful responses by my colleagues. I note a typo, it is Feb. 11, 2021, not 2020- that was last year. But you question provides the answer, as noted by Ms. King- the house has to be your primary residence. In your question you note that it would not be your primary residence, so Prop 19 is not going to apply to the transfer, no matter how it is structured, because you are not making the house your primary residence. Even so, if you can acquire a piece of real property in California at half its value because you are getting an inheritance, do it. You will probably get your money out in 5 years if property values continue to rise. But that requires a psychic, and I am only an attorney. You need a consultation with a RE specialist who can review the documents (none of these opinions are worth anything without such a review), and competent legal advice. Move quickly , time is short.

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