The importance of the parent-child exclusion

VIDEO TRANSCRIPT:

Hello, everyone, this is Robert Mansour, and today I wanted to make a brief video about The Parent/Child Exclusion. When you inherit real estate from your parents, or even your grandparents, frankly, if you inherit real estate from them and they're paying a certain amount of property taxes every year, you can actually keep the property taxes exactly where they are because you are inheriting from a parent or from a grandparent. That is know as The Parent/Child Exclusion. Pursuant to Proposition 58, which was passed many years ago here in Los Angeles County area and California.

What you need to know is that when you inherit, your property taxes don't have to go up, but you have to file the appropriate exclusion forms with the property tax assessor. Now, they might want to see the living trust or other legal instrument that gives you that property, and they want to make sure that this person is indeed a parent and a child relationship. If you don't file that exclusion, your property taxes might go way up. If your parents bought the property in say 1980 and now in present day that property is worth a lot more, your property taxes might skyrocket if you don't file the proper exclusion forms.

Be mindful of The Parent/Child Exclusion in cases where you might inherit real estate from your parents. Thank you very much for watching.