Q: I am 70 yrs. old and live on $716.00 a month I have some questions about my Mom's trust since she has passed. Thanks.
My Sister and myself hold 50% in trust. My Sister died 4 months before my Mom passed which passed her 50% to my 2 nephews. I moved in to Mom's house apox. 15 yrs. ago to take care of Mom. For the last 3 years I have been paying the 2nd mortgage, taxes + insurance out of my personal account. Now 1 of my nephews wants their money out of house. A friend is willing to loan me the money to buy him out based on what the house is worth. Is it a possible option to then change ownership from trust to the other nephew and myself and still be able to maintain the prop 13 status for parent to child transfer? With my income I would not be able to qualify for rent payments. I am terrified to be homeless. The lawyer who wrote the trust wanted $8000.00 to settle the trust. I don't even make that in a year. Any help you can offer would be a godsend.
A: I'm sorry to hear about your challenging situation. In California, property that is transferred between parents and children can sometimes avoid a reassessment under Proposition 13. Given that one of your nephews is willing to transfer his share of the property to you, it might still be possible to maintain the Proposition 13 tax benefits, although it's not guaranteed given the involvement of nephews, which adds complexity to the matter. Considering the details and nuances of your particular case, it would be highly advisable to consult with a California attorney to guide you appropriately through the process to ensure the best possible outcome. It is essential to handle this matter with legal guidance to safeguard your interests effectively.
A: The transaction you propose sounds simple but, unfortunately, it is more complicated than it seems. Depending on how the transaction is structured, there could be tax consequences. As a result, it is difficult for a lawyer to answer your question without going into various options and the tax consequences of each. I understand you are on a limited budget, so you should see if there are any pro bono services in your area. You may want to start by calling your County's Bar Association and asking for recommendations. I also understand your concern about being homeless but, if you end up being required to sell the home, depending on what your mother's trust says, you could get money from the sale that you could use to live off of. I've known a number of people who have rented rooms in other people's homes and, if the rooms have separate entrances, it will feel like your own place and you will find the cost is much lower than renting an apartment. Best wishes!
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.