When a person dies, his or her heirs might end up paying a substantial quantity of money in order to claim the property left to them from the testator’s estate. Much of this loan is due for property taxes. Thankfully, there are manner ins which an individual can decrease the expenses his or her heirs will assume by taking proactive actions.
Preventing the probate process can potentially enable heirs to avoid having to pay real estate tax. Furthermore, beneficiaries can avoid the hassle and cost related to the probate process.
Normally when a property transfers ownership, a reassessment is carried out. This frequently triggers there to be additional property taxes due, pursuant to California’s Proposal 13. Proposal 58 permits an individual to move ownership to a child without activating the change in ownership rule and enabling them to prevent the reassessment. A Claim for Reassessment Exemption should be prompt submitted in order to avoid this procedure.
Setting up a trust might accomplish both goals discussed above. When property is in a trust, the trust lawfully owns the property. The grantor establishes the trust, a trustee manages the trust and a recipient gets the benefit of the trust. If a living trust, the trust can be utilized for the grantor’s requirements during his/her lifetime. Additional directions can go over how the trust funds will be used for the benefit of the recipients.
Individuals who would like assistance in avoiding property taxes may decide to get in touch with an estate planning lawyer for assistance and guidance. She or he might have the ability to describe alternatives that are offered provided the specific scenarios.