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Financial Planning / Inheritance Strategies
|Subject: Re: Question about inheriting a home||Date: 8/28/2012 1:36 AM|
|Author: jrdown||Number: 5637 of 5730|
Thanks in advance for any help!
Off hand, does anyone has knowledge about the following situation?
I have been living with my dad and taking care of him for the past two years. I handle all of his finances, manage his two four-plex rental apartments, cook, clean, take him to appointments (he no longer drives) and generally care for him. He is 89 years-old and is fairly good health but slowing down and dealing with "old age issues".
It is my dad's desire that I inherit the home upon his death. Because he has been in California so long his home is under the Prop. 13 law. That has limited the property tax to roughly 1% of the assessed value. Without that the property tax would be much higher and it will be assessed at current value when sold. The new owners will pay a higher tax.
Now, my question is this. If I inherit the home (it is currently in a revocable trust) can I keep the prop. 13 tax rate since I am his daughter? If not, if I get put on the title can I keep the current rate even when my dad passes away? Of course, the negative may be that when I sell the home (I have no plan to and will remain in it) I will have to pay a higher capital gains tax instead of the stepped up basis.
What say you?
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