Donald Weyhrauch

Probate occurs when a homeowner dies without a trust and by default leaves a home to an heir. This means (in many cases) that an estate attorney or representative may need to help family members sell the property. Of course, these scenarios can vary widely which is why I became a Certified Probate and Trust Specialist through the California Association of REALTORS^®.

On July 12, 2021 Kate Dore, CFP^®with CNBC reported that “nearly 45 million U.S. households will transfer more than $68 trillion over the next 25 years, according to Cerulli Associates. Baby boomers hold the bulk of the wealth, thanks to a decade of stock market and real estate growth.”

She goes on to report that “President Joe Biden, meanwhile, has called for levy hikes on the wealthy, including raising the top tax rate, bumping levies on capital gains and taxing inherited property at death.”

Life happens… How will you pass on your legacy? How will a family member or friend? Through a Trust? Through Probate? Be prepared for when the time comes. Call me and we can discuss:

• The Purpose of Probate
• 9 exceptions to Probate
• Inventory and Appraisal
• Orders for probate and letters
• Different ways of holding title
• The sale of real property in probate
• Full authority vs. limited authority
• Which necessary legal documents are used in probate
• Factors affecting homeowner’s tax obligations
• Estate taxes, Capital gain and California property taxes
• Parent-Child/Garandparent-grandchild transfer exclusion
• Change in Ownership statement – Death of a real property owner
• How homeowners’ choices determine whether a probate is needed

I work seamlessly with individuals, families and attorneys to successfully support you through the trust or probate sale or purchase process.

Be safe. Take care. Plan.

Call for your appointment. 559.792.8263

California Prop 19 Tax Break*

by Donald Weyhrauch

Prop 19 allows eligible homeowners to transfer the taxable value of their primary residence to a replacement primary residence anywhere in California, regardless of location or value, as long as the replacement residence is purchased or newly constructed within two years of the sale of the original primary residence. Homeowners can save big on their annual property tax bills, whether they move to a replacement home that is the same price, more expensive, or less expensive than their original home.

WHO QUALIFIES?

Eligible homeowners who qualify for a Prop 19 tax base transfer include:

Homeowners ages 55 and over
Severely disabled homeowners
Victims of wildfires or natural disasters

BIG TAX SAVINGS FOR HOMEOWNERS MOVING WITH A PROP 19 TAX BASE TRANSFER

A 55-year-old couple purchased their home 30 years ago for $110,000. The taxable value of their home is now $200,000 (the $110,000 tax base value increased 2% each year for 30 years). Their annual property tax bill is $2,200 (1.1% multiplied by the taxable base). Under Prop 19, the couple can sell their home for $600,000 and transfer the property tax base of their original home to a replacement home anywhere in California, up to three times.

Example #1: Buying an Equal or Less Expensive Home:

If the couple sells their home for $600,000 and buys a replacement home for the same amount or less, the couple could transfer the lower tax base of their original home to the replacement home and save $4,400 on their annual property tax bill. By transferring the original home’s tax base ($200,000) to their replacement home, the couple would pay the same amount in property taxes ($2,200) after moving – instead of paying $6,600 on the replacement home’s purchase price of $600,000.

Example #2 Buying a More Expensive Home:

If the couple sells their home for $600,000 and buys a more expensive home for $700,000, they could transfer the property tax base of their original home to the replacement home and save $4,400 on their annual property tax bill. Instead of paying $7,700 in taxes on the $700,000 purchase price of the replacement home, the couple would pay $3,300 because the new tax bill would be calculated by adding the original home’s tax base ($200,000) to the difference between the purchase price of the replacement home ($700,000) and the sales price of the original home ($600,000).

Ready for change?

Call 559.792.8263. I’ll listen to your questions and ideas. We’ll create an action plan that could save you thousands of dollars every year!

*Information compiled from California Association of REALTORS.

On Probates and Trusts

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California Prop 19 Tax Break*

WHO QUALIFIES?

BIG TAX SAVINGS FOR HOMEOWNERS MOVING WITH A PROP 19 TAX BASE TRANSFER

Example #1: Buying an Equal or Less Expensive Home:

Example #2 Buying a More Expensive Home:

RED CROSS – Sound the Alarm

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