How To Transfer Real Estate to Sibling in CA Without Tax Reassessment?

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keyfort
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Joined: Thu Apr 04, 2019 12:46 pm

How To Transfer Real Estate to Sibling in CA Without Tax Reassessment?

Post by keyfort »

I've researched as much as I can online, and it seems the answer is probably no. I'm considering contacting a real estate attorney but I wanted to ask (in case I've missed something well-known): is there a way to transfer real estate from one sibling to another in California without the property tax being reassessed?
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celia
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Re: How To Transfer Real Estate to Sibling in CA Without Tax Reassessment?

Post by celia »

Here’s one way I can think of:
Quit claim the property to your sibling when it has the same market value as when you obtained it. (This will cause a re-assessment, but it should be close to your original assessment.)
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keyfort
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Joined: Thu Apr 04, 2019 12:46 pm

Re: How To Transfer Real Estate to Sibling in CA Without Tax Reassessment?

Post by keyfort »

celia wrote: Sun Jan 23, 2022 11:52 pm Here’s one way I can think of:
Quit claim the property to your sibling when it has the same market value as when you obtained it. (This will cause a re-assessment, but it should be close to your original assessment.)
Good point, and I should have mentioned that this is a home purchased a long time ago.. so a reassessment now would be a lot higher.
petulant
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Re: How To Transfer Real Estate to Sibling in CA Without Tax Reassessment?

Post by petulant »

An attorney licensed in your state would be much more helpful. It is a common issue how to transfer property without changing the assessment in California, though usually from parents to children/grandchildren, so I would suspect a trust/wills/estates attorney would be most helpful. For example, there could be some workaround where you transfer the home to a trust that has the sibling as a beneficiary. The trust would own the property and leave you with substantial control, but you could allow the sibling to live in the property perpetually, and they would receive it upon your passing. From there, a qualified attorney is going to know how far you can go in the terms of the trust to give stronger rights to the sibling without causing a tax reassessment.
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