UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev | Next
Author: jrdown Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 5741  
Subject: Re: Question about inheriting a home Date: 8/28/2012 1:36 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
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?


Robyn
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev | Next

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement