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Can the Prop 13 status be transferred from one sibling to another in a revocable trust?
Anonymous2 views3 answers
My father died at age 90 this summer. My brother is executor of the will and trustee of his irrevocable trust. My brother wants to put the house in his name until we decide what to do with it. He does not want to keep it but I am considering it. The house and monies were left equally to us. If I decide to buy the house from him, can the Prop 13 tax status be transferred from him to me? If my brother puts the house in his name, is it still in the trust? Is there a reason tax or law wise to put the house in his name if he doesn't want it? Thank you.
If he transfers out of the trust to his name then no longer under the trust of course and upon transfer to you it will be reassessed and the same exemption upon transfer from trust to beneficiary may not exists.
Is best to make trust distribution / off set transfers and equalizations all at the same time through an estate planning attorney. Trustee must also file the estate tax returns timely.
Putting the house in your brother's name does not sound like a good idea to me. It would no longer be a trust asset. I suggest that you consult an estate administration attorney in California to advise you.
In your situation the only transfer can be from your Dad’s trust to you or your brother or both of you. Your brother to you does not fall within the exception.
