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California Passed Proposition 19 Radically Changing The Parent-Child Property Tax Exclusions: What Planning Should We Do NOW? There have always been TWO parent-child exclusions from property tax reassessment. ONE: an unlimited parent-child exclusion for the principal residence.... TWO: a $1,000,000 per parent exclusion of assessed value for other real property not held in an entity. The passage of Proposition 19 eliminated the second one and limited the first one EFFECTIVE FEBRUARY 16, 2021, as follows: The principal residence parent-child exclusion is still available if the: (1) Property's fair market value at the time of transfer is: a. Less than $1,000,000 greater than its assessed value, it will retain its original value; or b. More than $1,000,000 over the assessed value, only $1,000,000 will be excluded from property tax reassessment (the exclusion is limited to the home's base value plus $1,000,000). (2) Child uses it as the child's own principal residence. Therefore, a primary residence held in a revocable living trust (in order to capture a step up in basis on death) will not retain the parents' property tax assessment unless the inheriting child(ren) use the residence as his/her/their own primary residence! This can cause significant increases to property tax assessments, based on how long the property was owned by the parents before being transferred to the child(ren). Non-primary residence properties (rentals, second homes, etc.) will be reassessed for property tax purposes on transfer - no more parent/child exemption after February 16th! Moving these to an LLC or family limited partnership BEFORE that deadline might be beneficial, but doing so means no step up in basis on death. It's an awful catch-22 and each case must be examined individually to determine the best approach.

Please read - reduction in services is happening!

"This time, there’s a pandemic on top of a wildfire, and the evacuation centers can only admit a fraction of evacuees in order to maintain safe social distance between cots." https://www.kqed.org//when-wildfire-breaks-out-during-a-pa

Significant court service reductions are planned.

Planning to vote in-person on Election Day tomorrow? Learn how to prepare to vote safely at your polling place: http://spr.ly/6183GChFv

If you have uninsured or underinsured losses from the recent Creek Fire in Fresno and Madera counties and have registered with FEMA, the next step is the home inspection. https://sierranewsonline.com/the-next-step-after-applying-/

Helping children with pandemic grief. There are many wonderful resources out there, including Good Griefs virtual event tomorrow.

https://www.youtube.com/watch

This excerpt is from the Governor's enacted budget for 2020-21. It summarizes the significant reductions to the court system in California, which has already experienced years of reduced budget: JUDICIAL BRANCH The Judicial Branch consists of the Supreme Court, Courts of Appeal, trial courts, and the Judicial Council. The trial courts are funded with a combination of General Fund, county maintenance-of-effort requirements, fines, fees, and other charges. Other levels of the J...Continue reading

California: First-Year Franchise Tax Exemption Extended On June 29, 2020, California Governor Gavin Newsom signed the state’s 2020 Budget Act. Under the bill, the first-year exemption from the state’s $800 Minimum Franchise Tax is expanded to include LLCs, LPs and LLPs that register with the Secretary of State from January 2021 through December 2023. The new law is intended to promote economic recovery by removing a barrier to business creation within the state. Additional details regarding the 2020 Budget Act can be found online at www.ebudget.ca.gov.

Welcome to the age of COVID. And the 21st century.

Reduced hours, reduced services.

Plan Now To Avoid Possible Retroactive Tax Increase If Democrats Gain Control of Senate and Presidency The presidential election is on Tuesday, November 3, 2020. Depending upon the date on which you are reading this, that is about 7 weeks (42) days away. If you wait until after the election results are in, assuming we know the results that day, you will have only about 8 weeks (56 days, not counting several days off for major holidays) to do any planning before the start o...Continue reading

3 Things To Know About Being A Trustee https://santabarbarafiduciary.com/3-things-you-should-know/

Advance Health Care Directives: The Hidden Piece to Your Estate Plan https://santabarbarafiduciary.com/advanced-healthcare-dire/

6 Steps to Ensure Your Estate Plan's Success https://santabarbarafiduciary.com/6-steps-to-ensure-your-e/