Legal Question in Wills and Trusts in California

Re: Prop 13, Estate taxes

My mother passed away in August. My brother and I each inherited 50% of her home in Huntington Beach. I wanted to keep the home and so refinanced it with cash out to pay my brother his half of the inheritance. The loan should close tomorrow. My brother wanted to be paid in escrow and for that to happen the escrow company needed to include his name on the title/deed. So the home is transferring from my mother to me and my brother (ok for prop 13) so far. BUT..... after the loan closes and my brother gets his money I will want him to dissolve his interest in the property in a way that DOES NOT TRIGGER TAX REASSESSMENT. Is this possible or am I screwed? If it will trigger tax reassessment no matter what I do, will they reassess for the entire property or just for the half that my brother had? If it is possible to not trigger tax reassessment, what paperwork do I/we need to fill out? Should I retain an attorney to help? If so, who?

Asked on 1/28/20, 8:20 pm

1 Answer from Attorneys

Michele Cusack Pollak & Cusack

Sorry, a sibling-sibling transfer is not eligible for exemption from reassessment, but you will be reassessed only as to the half transferred from your brother to you. (That is assuming of course that you file(d) the correct Claim for Exemption from Reassessment. You are entitled to the parent-child transfer exemption but can lose it if you fail to do the paperwork. If you haven't yet, it might not be too late, but don't tarry. You can find the form on the website for the Assessor-Recorder of your county.)

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Answered on 1/29/20, 3:39 am

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