As a real estate agent handling properties in a trust after someone has passed away, it’s important to know about California Rule 462.260. This rule triggers a property tax reassessment when ownership changes, often leading to a surprise tax bill for heirs/successors.
Key Points:
– Reassessment happens at death: If the property was in a trust and the titleholders have passed, the date of death triggers the reassessment, NOT the sale closing date.
– Expect a tax bill: Heirs/successors should be prepared for back taxes to be assessed.
Understanding California Rule 462.260 can save both you and your clients from unexpected headaches. By being aware of when these tax changes happen and proactively preparing for them, you can help clients navigate the complexities of California’s property tax system.
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