Inheriting from a loved one can be a bittersweet experience. While you’re likely filled with gratitude for the inheritance, navigating the legal and tax aspects can be confusing. If you’re dealing with an inheritance in California, you might come across Form IT-22, the Inheritance Tax Affidavit. But fear not! This blog post will break down the key information about Form IT-22 and when it might be relevant to you. Important Note: California Does Not Have an Inheritance Tax! That’s right, you read that correctly. Unlike many other states, California does not impose an inheritance tax on beneficiaries. So, you generally won’t need to file Form IT-22 unless a specific situation applies. So, When Does Form IT-22 Come In? Form IT-22 comes into play when the deceased (the person who passed away) owned property in California but wasn’t a resident of the state at the time of death. In such cases,…

California Proposition 19, the Home Protection for Seniors, Severely Disabled, Families and Victims of Wildfire or Natural Disasters Act, is a constitutional amendment that was approved by voters in the general election on November 3, 2020, with just over 51% of the vote. The amendment makes changes to property tax benefits for families, seniors, severely disabled persons, and victims of natural disaster in California. Some of the key provisions of Proposition 19 include: If you have inherited property and plan to live in it, be sure to file a homeowners exemption with the County Assessors office! If you are an Administrator, Executor, Trustee or Beneficiary and have questions please reach out to us direct! Proposition 19 is a complex amendment with a number of implications for homeowners, taxpayers, and local governments. It is important to consult with a tax advisor to understand how Proposition 19 may affect you.…

What is a Court Ordered Probate Referee and how do they affect the sale of Real Property? A court ordered probate referee is a licensed appraiser who is appointed by the court to appraise the value of assets in a probate estate. This includes real property, as well as other assets such as stocks, bonds, and personal property. The referee’s appraisal is used to determine the value of the estate for tax purposes and to set the sale price of any real property that is sold as part of the probate process. The probate referee’s appraisal can affect the sale of real property in several ways. First, it can affect the price that is ultimately paid for the property. The referee’s appraisal will be used as a starting point for negotiations between the buyer and seller. If the buyer believes that the property is worth more than the referee’s appraisal,…

I get this question all the time and here is my simplified explination: Limited authority in a probate case means that the personal representative is only allowed to perform certain tasks, such as selling real estate or collecting debts. The court will supervise these tasks more closely than if the personal representative had full authority.The personal representative’s limited authority is granted by the court in the probate order. The probate order also sets out the specific tasks that the personal representative is allowed to perform.The personal representative must file a report with the court each month accounting for all of the estate’s assets and liabilities. The report must also include a list of all of the tasks that the personal representative has completed during the month.The court can revoke the personal representative’s limited authority at any time if the personal representative is not acting in the best interests of the…

A trust is a three-party financial arrangement where one party (the trustor) gives a second party (the trustee) the ability to hold assets or property for a third party (the beneficiary). The Business Dictionary defines a trust as a “legal entity created by a party (the trustor) through which a second party (the trustee) holds the right to manage the trustor’s assets or property for the benefit of a third party (the beneficiary).” Basically, a trust is a financial arrangement between three parties that hold assets for a beneficiary. There are many different kinds of trust, but the general idea is a three-party ownership system wherein one party gives another party the rights to hold property or assets for yet another party (who benefits from the arrangement). Parties in a Trust As part of its definition, a trust is a composed of three parties – the trustor, the trustee and…

Choose the Right Agent The key to a successful sale is to list your property with an agent who understand both the complexities of fiduciary sales and the needs and challenges that may arise from your unique probate, estate, trust or conservatorship situation. When interviewing agents be sure to ask: How many probate, estate and trust properties have they sold in the last year? How much of their business is focused on probate sales? What are the specific services that they provide that will meet the needs of your unique situation? What sets them apart from others and what are their references? Be sure to list your property with a seasoned agent with in-depth knowledge of the fiduciary sales process, the real estate market, and one who offers you a full range of services. This will ensure your property is sold at its highest value while saving time and money.…