These folks are all basically right, it is usually a 50-50 deal inheriting property from a parent... unless otherwise stated in a will. For those in this type of situation. But an estate lawyer will get more specific, given the terms of the will or trust. However, for middle class heirs in California inheriting property like this, we're not talking wealthy folks here, it often turns into a bitter conflict between siblings -- those who insist on selling their inherited property shares, and those beneficiaries who want to keep their inherited home, plus keep parents low property tax base -- and avoid property tax reassessment with a Proposition 19 (formerly Prop 58) parent-to-child exclusion (from paying current tax rates). That's why I want to add this option for middle class California families...
Given that in California, thanks to Proposition 13 and Prop 19, we can transfer parents property taxes when inheriting property and inheriting property taxes – and keep parents property taxes as long as we reside in our inherited home as a primary residence, moving in within 12-months of course... So if the beneficiaries who want to keep their parent's home can buy it with a loan to an irrevocable trust, in conjunction with the Proposition 19 parent-child transfer, the parent-to-child exclusion to avoid property tax reassessment – upon buying out siblings property... Those retaining their inherited property can get a nice low property tax base, while siblings selling their property shares end up receiving a lot more money than if they sold out to an outside buyer with a broker or realtor involved, charging their 6% commission, legal fees; etc. A win-win outcome for everyone. I would suggest that anyone interested in this subject go to the CA State Board of Equalization at https://www.boe.ca.gov and get the facts; or go to a property tax blog like https://propertytaxnews.org or Wikipedia... and get info on using trust loans from an established trust lender like https://cloanc.com The more we know, the better off we’ll be dealing with a situation like this, inheriting property, buying out co-beneficiaries... saving a bundle on property taxes mainly.
