Q: I have 3 units rental property in California. The property owned by a corporation in Nevada. I'm a single owner of
the corporation. Can I transfer the property in to my trust in ca without any tax consequences.
Do I need to create trust before transferring
A: Anyone can place their real estate and other assets into a revocable trust (a trust that can be changed or modified by the owner, who is called a Settlor or Trustor) at any time and there shouldn’t be any tax consequences. Schedule A to the trust should list the corporation as an asset of the Settlor and the stock certificates should be changed into the name of the trust — because the stock represents ownership of the corporation.
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A:
Transferring a rental property from a corporation to a trust may have tax consequences, so it is recommended that you consult with a tax professional or attorney to discuss the specific details of your situation.
In general, transferring the property to your trust may trigger a reassessment of the property for property tax purposes, which could result in a higher property tax bill. However, there are some exceptions to reassessment, such as transferring the property to a revocable trust for estate planning purposes.
As for creating the trust before transferring, it is generally recommended to establish the trust before the transfer in order to ensure that the transfer is properly documented and that the ownership of the property is correctly reflected in the trust documents.
Again, it is recommended that you consult with a qualified professional to ensure that the transfer is done properly and to minimize any potential tax consequences.
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