Don't you understand the CA issue?
Nope, and since I don't live in CA or own property in CA, I really don't need to. But from what I see Prop 13 and Prop 19 only deal with *Property* taxes, and have absolutely nothing to do with any other taxes, such as capital gains on the sale of the property. But leaving the property in a trust may have negative ramifications in the future for all I know. If I recall correctly, when it comes to income tax, I think that taxes on a trust can be higher than taxes on an individual. I know that estate taxes can be higher than personal taxes. But not to sure on that when it comes to trusts.
Overall, so long as the property remains in the trust, I "may" (not sure) retain it's original cost basis and not get the step-up in basis. That can be a real killer on the tax liability when the property is sold.
