Adding more people or transferring the house to relatives or children can result in a reassessment and land tax will increase each year.
Circumstances in which Property Taxes may not be increased:
- Add a spouse
- Add to Joint Tenancy
- Give to children if parents and children share the home as a residence
- Transfer to their Living Trust.
Circumstances in which Property Taxes may be increased (except in exceptional cases):
- Transfer outright
- Transfer part of Tenants-in-Common
- Split Joint Tenants into Tenants-in-Common
Having a Living Trust not only ensures control of the assets, but the main purpose of a Living Trust is to help us avoid the Probate process through the Court. The cost of probate can be from 5% -10% of the total value of our assets and can take up to 2-3 years for the Court to resolve.
VINH DOAN LAW OFFICE
Estate Planning | Taxation | Probate | Business
Vinh N. Doan, MSIM, J.D., LL.M. in Taxation
10971 Garden Grove Blvd., Suite G
Garden Grove, CA 92843
Cell:(714) 332-9700