When an individual dies, his/her successors might wind up paying a substantial amount of loan in order to claim the property left to them from the testator’s estate. Much of this cash is due for property taxes. There are methods that an individual can lower the expenses his or her heirs will presume by taking proactive steps.
Avoid the Probate Process
Preventing the probate procedure can possibly permit successors to prevent needing to pay real estate tax. Additionally, heirs can avoid the trouble and expense related to the probate process.
Prevent Real Estate Tax Reassessments
Normally when a property transfers ownership, a reassessment is performed. This frequently causes there to be extra real estate tax due, pursuant to California’s Proposition 13. Proposal 58 enables a person to move ownership to a child without activating the change in ownership rule and permitting them to avoid the reassessment. A Claim for Reassessment Exemption should be prompt filed in order to avoid this treatment.
Establish a Trust
Setting up a trust may accomplish both objectives discussed above. When property remains in a trust, the trust legally owns the property. The grantor establishes the trust, a trustee manages the trust and a recipient gets the benefit of the trust. If a living trust, the trust can be utilized for the grantor’s requirements during his/her lifetime. Additional instructions can discuss how the trust funds will be utilized for the advantage of the beneficiaries.
Individuals who would like help in preventing property taxes may choose to contact an estate planning attorney for assistance and assistance. She or he might have the ability to explain choices that are offered offered the particular scenarios.