California Proposition 19 passed resulting in new questions and opportunities for many here in San Diego and across California. Proposition 19, entitled: ‘Changes Certain Property Tax Rules’ is good news for homeowners who are 55 or older, disabled, or have been victims of wildfires, or other natural disasters. The Constitutional amendment now allows this group of homeowners to transfer their current tax assessment to a primary home anywhere in the State of California, including to a more expensive residence.
Proposition 19 has closed the 1978 California Proposition 13 tax loophole that allowed children to inherit their parent’s favorable property tax rate. Proposition 19 now requires that they move into the home as their primary residence within a year of inheriting the property in order to qualify for the parent-to-child exclusion.
With Proposition 19 passed and a new year approaching it is a good time to review existing estate plans or establish a new one. While Proposition 19 may favor a group of homeowners, how does this impact your Estate Plan? Allen Barron, Inc., a leader in asset protection, estate tax planning, and living trusts, encourages you to create a trust, and/or review your existing trust and estate planning documents, and consider updating your existing succession plan in order to protect your family and beneficiaries.
Please take a moment, reflect on our 2020 year, and as you plan for 2021, ask yourself:
- Am I planning on moving in 2021?
- Are there changes in state law? Hint: Prop 19
- Have I experienced changes in family relationships and dynamics?
- Were there health changes in the grantors or my beneficiaries?
- Did I experience a significant changes in assets?
If you answered ‘yes’ to any of the following, we encourage you to contact us to schedule a free consultation, or call us toll free at 1 (866) 631-3470 for a free consultation. Our team is ready to provide legal services that offer expert insight and analysis through years of experience and staying at the forefront of state legislation that impacts California residents and their assets.
As always, we wish you a Happy Thanksgiving with abundance and joy now and throughout the Holiday Season.
Janathan L. Allen and Richard C. Barron