Welcome back to The Jones Zone! In this episode, we continue our conversation with real estate tax attorney, Michael Kelly. If you missed Part 1, be sure to check it out before diving into today's discussion.

In Part 2, we explore the complexities of transferring property into trusts, avoiding property reassessments, and how Prop 19 affects inheritance in California. Michael answers listener questions, offering expert insights on how to handle property transfers to preserve wealth and avoid unnecessary tax implications.

Episode Highlights:

• Transferring Property into Trusts: Michael explains the difference between revocable and irrevocable trusts and how each impacts property taxes in California.
• Avoiding Reassessments: Steps you can take to transfer property into a trust without triggering a property tax reassessment, and why being proactive with your paperwork is crucial.
• Prop 19’s Impact: How Prop 19 affects the inheritance of family homes and investment properties, and the strategies you can use to minimize tax burdens for your heirs.
• Listener Q&A: Michael answers questions from listeners, covering topics such as:

Key Questions Asked:

1. What tax implications should someone consider when transferring real estate into a trust?
2. Does transferring property into a revocable or irrevocable trust affect property tax assessments?
3. Should homeowners transfer properties before or after the death of their parents if they have a terminal illness?
4. How can multiple inherited properties be kept as passive income by siblings, and what are the tax considerations under Prop 19?
5. How can families avoid paying stepped-up property taxes when inheriting income property under Prop 19?

Contact Darryl: 

Darryl & JJ Jones Real Estate 

Email: darrylandjj@gmail.com 

Phone: (714) 713-4663

Contact Michael: 

Michael Kelly

Email: michael@apataxlaw.com 

Phone: (818) 553-1300