California Proposition 19 – What Estate Planners Need to Know

Wednesday, January 13, 2021

4:00 pm ET (1:00 pm PT)

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Speakers

Webinar Description

As estate planners consider potential tax law changes that might occur at the federal level this year, one state is also dealing with a new property tax issue that could impact many clients owning real property in California.  California Prop. 13, which was enacted in 1978, created a situation in which the assessed value of California real property for property tax purposes is often far less than the market value of such property, making it not unusual for a property to have an assessed value that is less than 20% of the fair market value.  If the property tax value is reassessed (which would occur if the property is sold, or in some cases upon death of the owner), the property taxes owed can increase significantly.

Until recently, clients could rely on California Prop. 58 and California Prop. 193 to pass their annual property tax savings from Prop. 13 down to their children (and in rare instances, their grandchildren). However, California Prop. 19 has repealed Prop. 58 and Prop. 193, effective February 16, 2021, eliminating a significant tax benefit for many clients who want to pass items of their California real estate on to their children and grandchildren.  Clients have a very small window of time to consider whether to take steps – and to actually take them – to preserve the potential property tax savings conferred by Prop. 13.  In most cases, this is going to require complicated analysis and planning relating to California property tax issues, federal gift and estate tax issues, and possibly preserving a step up in basis for income tax purposes when the property owner dies.

Fortunately, this analysis is in progress and InterActive Legal is pleased to be able to share with you, via this webinar, the thoughts of those who have been carefully considering the impact of Prop. 19.  Gerald Lunn, Jonathan Blattmachr, and Teresa Bush will provide their different perspectives, analysis, and recommendations for advising clients on property tax issues during this limited window, and beyond.

Even though this issue applies to only one state, it is significant enough to warrant closer examination, and attendees from any state are welcome to attend this webinar.


CLE Credits

InterActive Legal is not an approved Continuing Education Sponsor. However, several states and regulatory agencies for a variety of professionals that participate on our teleconferences may still receive continuing education credit for their participation. If a participant wishes to receive CE credit for their participation in these teleconferences, they must apply to receive credit on their own and through their individual states and regulatory authorities. It is the responsibility of the participant to file for CE credit and is not guaranteed by the webinar sponsors.


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