Legal Question in Wills and Trusts in California

Hello,

My brother, sister and I have inherited parents home, probate has not yet been commenced. My sister wants her and I to live there but brother is very ill, had a trust prepared wherein he wants his share to go to one of his three children. County told me taxes would stay the same for two people but with three on the title, one person's share would be increased,;should we buy brother out, if we can afford to, before commencing probate? Property is VERY old, poor construction and in need of a lot of repairs. How should this situation be handled in order to be fair to all and still try to protect old tax basis? Thank you for any insight you may offer as to best way to handle this situation. Anxiously await your reply.


Asked on 9/22/16, 8:10 am

1 Answer from Attorneys

I am sorry for your loss. The property taxes should not go up if it's a parent-child transfer. So it can pass from your parents to all three of you without a change in property tax. Then your brother's share could go to his kids without a change in property tax. This doesn't answer the question of whether the house should be kept though. To me three owners sharing a house sounds complicated. However, once your brother dies and his kids are involved it sounds even more complicated. Plus, you mention it being old and in need of repairs. I would probably sell it. However, do the parent-child exclusion form before selling to avoid a supplemental property tax bill. Start probate now so you can sell the house sooner. Good luck. -John

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Answered on 9/22/16, 8:14 am


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