Hello.
First of all, I must note that Google Answers provides general
information, not professional legal advice. The information below is
in no way intended as legal advice, and should not be taken as such.
If you need legal advice, you should contact a qualified attorney.
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Proposition 58 excludes from reassessment transfers between parent and
child of a principal residence and the first one million dollars
($1,000,000) of assessed value of all other real property.
"ELIGIBLE PROPERTY
Principal Residence
A claim may be filed on the purchase or transfer of real property that
is the principal residence of an eligible transferor. To be considered
a principal residence, there must be a homeowner's exemption or a
disabled veteran's residence exemption granted in the name of the
eligible transferor. There is no limit to the number of transfers of
principal residences, but each principal residence must qualify as
such. The residence need not become the principal residence of the
transferee(s).
Other Property
A claim may also be filed on the purchase or transfer of the first one
million dollars ($1,000,000) of assessed value of all other real
property of an eligible transferor. The value is the Proposition 13
value, including the full value of any new construction in progress,
determined as of the date immediately prior to the date of a purchase
by or transfer to an eligible transferee.
...
WHO ARE CONSIDERED CHILDREN?
(1) Any child born of the parent(s).
(2) Any stepchild of the parent(s) and the spouse of that stepchild
while the relationship of stepparent and stepchild exists. The
relationship exists until the marriage on which the relationship is
based is terminated by divorce or, if the relationship is terminated
by death, until the remarriage of the surviving stepparent.
(3) Any son-in-law or daughter-in-law of the parent(s). The
relationship of daughter-in-law exists until the marriage on which the
relationship is based is terminated by divorce or, parent and
son-in-law or if the relationship is terminated by death, until the
remarriage of the surviving son-in-law or daughter-in-law.
(4) Any statutorily adopted child who was adopted before the age of 18."
source: Contra Costa County - Proposition 58 & 193
http://www.co.contra-costa.ca.us/depart/assr/propinfo.htm#prop58and193
Now, assuming that the transfer from your grandfather to your father
met the requirements detailed above, there is nothing there to
disqualify you and your father from later taking advantage of the same
exclusion.
However, I did find one type of exception mentioned in a Bureau of
Equalization memo from 1998. Suppose that your father was REQUIRED
(e.g., by your grandfather's will) to transfer the property to you.
In that case, if he transferred the property to you, the exclusion
would not apply because you can't qualify for the
grandparent-to-grandchild exception under Proposition 193 since your
father is still living. However, as long as the your father is
unrestricted (i.e., he could sell the property to anyone he wants),
you can buy it and get the exemption. See:
"14. Question: Can an unrestricted transfer from grandparent to parent
immediately followed by a transfer from parent to child qualify for
the parent-child exclusion?
Answer: Yes. Chapter 48 of the Statutes of 1987 states that it is the
intent of the Legislature to liberally construe section 63.1 to carry
out the purpose of Proposition 58. Therefore, as long as each transfer
is unrestricted and is otherwise eligible (e.g., between parents and
children), the exclusion is applicable. If the parents are restricted
to transferring the property to their child, then the step transaction
doctrine would apply and these steps would be collapsed into one
transaction, i.e., a transfer from grandparent to grandchild. Since
the parents are living, the grandparent-grandchild exclusion would not
apply, and this transaction would not be excluded from change in
ownership."
http://www.boe.ca.gov/proptaxes/pdf/98_23.pdf
The bottom line, though, is...
"It is possible under current law to use two transfers to transfer
property from a grandparent to a grandchild and not subject the
property to reappraisal."
source:
STATE BOARD OF EQUALIZATION, 3/04/02
http://www.boe.ca.gov/legdiv/ptleg/pdf/aca19-1rkfinal.pdf
(Note that several of these documents are in PDF format, so the Adobe
Acrobat Reader is required. If you don't have that, visit:
http://www.adobe.com/products/acrobat/readstep2.html )
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search terms:
"proposition 58" limit parent child
I hope this helps. Again, though, this isn't legal advice. You may
want to call the local county assessor if you have any questions.
http://www.boe.ca.gov/proptaxes/assessors.htm
Thanks. |
