Transferring ownership of property, whether real property or personal property, may seem to the unwary like it should be simple and straightforward enough. However, there are traps to be avoided and issues that should be addressed, such as:
- Understanding and addressing the separate property vs. community property issues for both personal property and real property transfers
- Using the correct type of deed for your real property transaction
- Avoiding reassessment of the property for property tax purposes when possible
- Knowing what changes in ownership are automatically excluded from reassessment and what changes require a claim to be filed to avoid reassessment
- Avoiding transfer taxes where possible
- Knowing when there are gift tax implications from a transfer and how to address them
- Utilizing a technique for adding any person to title of real property without triggering reassessment
- Choosing the most advantageous method for owning property to maximize potential tax savings at death via stepped-up basis
- Considering the possible adverse property tax implications of transferring an interest in a legal entity that owns real property
- Avoiding penalties and interest for failing to notify the county of a change in ownership
Owning property - especially real property - is the classic American dream. Being able to pass along that investment is a source of pride for many. However, navigating complex property tax laws and other property ownership issues must not be overlooked in the process.
Contact Collins Law for help with your property transfer.