When families think about protecting real estate through estate planning, they usually focus on questions such as who should inherit the property, whether it belongs in a trust, and what should happen to it after the owner dies. They may also consider how the property will be managed, whether it should be sold or kept…
The Wall Street Journal (Candace Taylor) 09.24.24, published the article “Secret Trusts, a Bitter Divorce and the Battle Over One of America’s Biggest Homes.” The article is regarding the Pritzker estate, a 50,000-square-foot property in the hills above Los Angeles (one of the largest private homes in the country). It is at the center of…
Debt does not simply go away when the debtor passes, which is true of a mortgage. Therefore, the beneficiaries will inherit the property and the existing debt if a home still carries a loan. Various situations may arise, contingent upon the specific terms of the mortgage. For example, beneficiaries may take over the mortgage or…
The Garn-St Germain Act was passed in 1982 and signed into law by President Ronald Reagan. The act was implemented to help the loan industry, which was struggling with inflation and high interest rates. It allows lenders to enforce contracts, such as mortgage agreements, that contain due-on-sale clauses. They can be enforced even if the…
The ULA Tax April 1st, 2023, marks the day California’s housing bill, United to House L.A. (ULA), takes effect. The housing bill was created to fund more affordable housing to decrease homelessness in California. However, with this bill comes a much higher sales tax on property that exceeds $5 million dollars in value. What Does the…
The good news? There still may be hope for those who missed the boat on planning before Prop 19 became effective! Prior to February 16, 2021, real property was reassessed at market value if it was sold or transferred, and often times property taxes increased dramatically as a result. After February 16th, passing real property…
Under Prop 19, the “HomeownersExemption” Allows for Reduction in Property Value for Tax Purposes We have received numerous calls on how the recently passed Proposition 19 will impact residential property taxes when handed down to children and beneficiaries. In response to these questions and more, Partner, estate planning attorney and tax planning attorney, R. Zebulon…
The Pros & Cons This November, California voters approved Proposition 19, which expanded some property tax exemptions for people 55 and over, but also increased property taxes in many future property transfer situations when there is a death in the family. The quick recap is there are some property tax PROS for eligible homeowners to…