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Josh Ramirez, Esq., LLM

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Protect and Preserve Your Family’s Wealth

Experienced attorney Joshua Ramirez, founder of California Estate Planning Services, explains how to protect your family’s wealth for future generations

California Estate Planning Services, founded by Joshua Ramirez, Esq., LLM, offers personalized legal solutions in estate planning, trust litigation, conservatorships, probate, and elder law, focusing on understanding clients' unique needs.

One of the most common ways families preserve wealth for the next generation is through real estate—particularly the family home. This is now more difficult than ever to accomplish due to the passage of Proposition 19.

California homeowners have long benefited from Proposition 13, passed in 1978, which capped property taxes at 1% of a property’s assessed value, limiting annual increases in assessed value to no more than 2%.

This initiative provided stability and predictability for property owners; even as real estate values skyrocketed. It allowed homeowners to pass their property tax base to their children, ensuring that family homes could remain affordable for future generations.

However, the landscape changed significantly with the passage of Proposition 19 in November 2020. While Prop 19 retained many benefits of Prop 13, it introduced new restrictions on transferring the low property tax base to heirs.

Under Prop 19, only a parent’s primary residence qualifies for exclusion from reassessment, and even then, the exclusion applies only if the inheriting child uses the property as their primary residence. Additionally, if the property’s market value exceeds the parent’s assessed value by more than $1 million, the excess amount is subject to reassessment.

Why is this a big deal? Let’s take a common example of a Yorba Linda family paying $3,000 per year for their property tax bill. If the house is now worth $1,500,000, and it gets reassessed, the new property tax bill will be more than $15,000 per year.

For families who intend to keep property within the family but cannot meet the primary residence requirement, Prop 19’s rules can lead to significant financial strain.

Children who inherit rental properties, vacation homes, or commercial buildings face immediate reassessment, often forcing difficult decisions about whether or not to sell the property. With the increased tax burden, this decision may not be financially sound.

The good news is that with careful planning, families can avoid these challenges and preserve their wealth for future generations. California Estate Planning Services has strategies that can be implemented before death to help mitigate reassessment risks.

However, these approaches are complex, requiring thorough analysis to ensure compliance with California law and alignment with the family’s goals.

Working with an experienced estate planning attorney is essential to navigating these complexities. California Estate Planning Services’ strategies have a 100% success rate when it comes to avoiding reassessment, and ensuring your family’s legacy is protected.

As Californians, we invest in real estate not just for ourselves but for the security and stability it can provide our families. By understanding Prop 19 and taking action, you can preserve the benefits of Prop 13 for your heirs and ensure your property remains a source of financial strength for generations to come.

Please don’t wait until it’s too late! Start planning today to safeguard your family’s wealth and make the most of the opportunities available under California’s property tax laws.

Visit https://www.californiaestateplanningservices.com/

 

“As Californians, we invest in real estate not just for ourselves but for the security and stability it can provide our families.”

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