Can You Inherit Favorable Tax Treatment? How to Inherit Your Parent’s House and Low Tax Bill

[Music] Hi this Keith Davidson from Albertson and Davidson in this video we're discussing real property taxes when a person passes away in they transfer assets real property from themselves to their children under California law the children are allowed to file a parent to child exclusion and what that does is it prevents the house or the real property from being reappraise for real property tax purposes and that can be a real benefit to the child if the parent bought the house many years ago the tax valuation for real property tax purposes might be very low whereas if you were to reappraise the property at current values the value would be much higher and resulting in more property tax rather than less property tax the way the parent had it so that property tax basis that appraised value that they use to determine the amount of tax it can remain intact if property passes from parents to children but you have to file the proper exclusion form and the question is does the trustee have the responsibility for filing that form and that all depends it depends on the type of trust that you're dealing with and how long these assets are going to remain in trust so the property is supposed to pass out quickly to the beneficiary and it happens in a matter of a few months that it might be the responsibility of the beneficiary to file the parent to child exclusion if however the property is going to be held in trust for a significant amount of time then the trustee would have the obligation to file that parent to child exclusion so it really depends on the facts and circumstances of your case as to who has the responsibility for filing the exclusion but the thing that you should know and always remember is if you're receiving real property from your parent be sure that some way somehow somebody files the parent. [Music] [Applause] [Music]