Will There Be Property Tax Consequences With A Living Trust?
Will there be property tax consequences to making a living trust? So I keep telling people that they probably need a living trust, especially if you own property here in California, but many people are worried that if they touch the title that it will create a property tax reassessment.
I’m here to tell you that there is an exclusion for that, that you don’t have to worry about that. You could transfer property you own into a living trust without a reassessment. Now the only caveat to that is if it’s jointly held with another person that’s not your wife, that could be problematic and it’s where you need to have the advice of counsel, make sure they do it the proper way or you will risk a reassessment for joint tenancy property for sure.
So the short answer, no, you’re not going to get a reassessment. And in actuality, if you ask yourself, does anything happen in terms of tax wise, is there anything different that I have to do now that I have a trust? The answer is no. There’s nothing that’s changed.
The only thing that’s changed is title to your assets and the law affords you protections for doing that. So do it without worry. You’re not going to have a change in taxes, not going to have a change of property taxes, and you could sleep well tonight.
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