Many private wealth clients rely on Bridge Law LLP when it comes to structuring their real estate portfolio, because they understand the need for comprehensive property tax planning.
Under Proposition 13, a real estate’s property tax can increase only 2% per year. However, most property owners in California do not realize that, under Proposition 19, upon their death, their properties will be fully reassessed according to their date of death values. This means that, for the most part, property taxes at death will increase to fair market value, thereby making it too expensive and nearly impossible for successive generations to keep the properties “in the family.”
Planning Strategies Around Proposition 19
Fortunately, the attorneys at Bridge Law LLP have a strong reputation when it comes to multi-generational planning strategies around Proposition 19, through the creation of legal entities established to eliminate any new property tax reassessments at death. Through very artful gifting and planning techniques, we have assisted countless families, property developers, commercial building owners, landlords, and real estate professionals in keeping and maintaining their property tax basis even after death, so that successive generations can continue to keep the same lower property taxes that their parents paid.
Attorney Lalit Kundani has authored several articles on these topics and has represented a host of ultra-high-net worth California property owners when it comes to this planning. He is a frequent speaker on Proposition 19 and the solutions around it.