Are you a financial advisor, real estate agent, or broker? Do you advise clients who own real property in California?

If so, you most likely already know what happened on February 16, 2021. Proposition 19 went into effect and it drastically changed how properties are assessed for property tax purposes when a property is inherited.

Prior to Proposition 19 going into effect, children could inherit property from their parents under the parent-child exclusion and the property would typically be exempt from property tax reassessment. Now, under Proposition 19, this has dramatically changed. Here’s an example of how this affects property owners:

• • Your Client’s parents bought a 4-Plex in 1975 for a purchase price of $100,000.00
  • The Current Fair Market Value for the 4-Plex is now $2,500,000.
  • The Current annual Tax Bill is only $3,000.
  • Under current law, when your Client’s parents die, and your Client inherits the property the Taxes increase to: $25,000.00 per year

This means that over a 25-year period:

• • Under Prior Law (Proposition 13):$80,000.00 in Taxes Paid
  • Under new Proposition 19 for Residence: $280,000.00 in Taxes Paid
  • Under new Proposition 19 for Non-Residence/Rentals: $680,000.00 in Taxes Paid.

However, there are strategies that your Clients can do NOW to help protect themselves and their families from the effects of Proposition 19.

Join us for our FREE live webinar where we will discuss the changes brought by Prop 19’s implementation, as well as explore opportunities for avoiding skyrocketing property taxes, and what you need to know to best advise your clients.

Discussion Topics Will Include:

• • How Proposition 19 affects California real property owners
  • Strategies to avoid higher property taxes due to Proposition 19
  • How LLCs and Trusts can be used to transfer assets without triggering property tax reassessments.

Register now for this can’t-miss LIVE presentation plus question-and-answer event with Estate Planning Attorney and certified specialist by the California State bar in Trust and Probate, Andrea Shoup.

Click Here to Register

Meet the Presenter:

Andrea Shoup, Esq.

Andrea Shoup is an experienced attorney specializing in Trusts, Wills, Trust Administration, Probate and Business Succession Planning serving California. She is dedicated to providing the highest level of personalized service to her clients and understands this may be an unsure and difficult time. Andrea has been certified by the California State Bar as a specialist in Estate Planning, Trust and Probate Law.

Andrea grew up on the California Central Coast, in San Luis Obispo County. In 2002, she earned her Bachelors of Science Degree in Business Administration from Cal Poly San Luis Obispo. Andrea decided to pursue a law degree and graduated Magna Cum Laude from California Western School of Law in 2006. While in law school, Andrea served as Editor-in-Chief of the Law Review and was an officer of the Pro-Bono Honors Society.

Following law school, Andrea worked as a Deputy District Attorney for the San Diego District Attorney’s Office. As a felony trial attorney, Andrea was dedicated to ensuring justice was served in every case.

After leaving the District Attorney’s Office in 2012, she opened her own law practice and pursued new career. She now focuses exclusively on Estate Planning, Trust Administration, and Probate Administration. Andrea works diligently and attentively to ensure every case and situation is handled effectively and appropriately.

Andrea enjoys getting to know each client, their concerns, and their wishes in order to tailor a plan to best serve their needs. She takes pride in providing excellent and individualized attention to each client, helping them understand every step of the process. Andrea lives in Murrieta, California with her husband and their four children.

Contact Andrea today to discuss your unique situation.

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