067: Estate Planning Challenges with Real Estate

When it comes to estate planning, we find that many of our clients want to divide their entire estate equally among their children. Unfortunately, this presents a challenge after death for a variety of reasons – especially when real estate is involved. And now that Prop 19 has passed in California, there are even more complications and things to consider. If you’re not familiar, Prop 19 is the new transfer tax law that, among other things, requires that if there is a parent-to-child property tax transfer, the heir must live at the residence–listen in for more.

In a new episode of Absolute Trust Talk, Kirsten welcomes back fellow Absolute Trust Counsel attorney Madison Gunn. Kirsten and Madison dive into this top asset that can cause a world of headaches for beneficiaries and discuss some solutions and workarounds to successfully including residence and other properties in an estate plan. While this episode focuses on California law, it provokes various discussion points vital to any estate plan. We hope you will listen in and share this with your friends and family no matter where they live.

Big Three from Episode #067:

  1. If you’re including any type of real estate in your estate plan, it’s vital to discuss with your attorney and understand how Prop 19 can impact you and your loved ones.
  2. Make sure your children are included in the discussion and planning process.
  3. Do not panic. There are workarounds and ways to protect your assets and beneficiaries.

Time-stamped Show Notes:

3:07 – Residence and Real Estate cause one of the biggest headaches when it comes to estate planning. Here’s why – hint it has to do with Prop 19.

5:09 – What happens if the residence is left equally to multiple siblings?

6:48 – Kirsten and Madison discuss “financial finagling” in estate planning when a residence is left to more than one sibling.

9:04 – What happens if the parents die and a sibling or another person is already living in residence?

11:18 – Kirsten and Madison dive into other considerations that could impact the person you are leaving a residence to.

14:50 – Will a vacation home be assessed if the children decide to keep it?

16:00 – Is there a way to get around Prop 19?

17:10 – Will Prop 19 be repealed?

[Ad] Planning for the future is vital to ensure that you and your family are protected and prepared throughout your later years of life and beyond. Please don’t wait until it’s too late. Schedule a free discovery call today, and we’ll review your case to make sure all your needs are met.