What is the name of your state? California.
Hi, I have a question regarding a property that is currently under a Children's trust as a result of the death of both my parents. This is a rental property that is now titled under a Children's trust but under the terms of the original living trust belongs to 3 surviving children. It has been this way for 10 years. Now, one of the children wants to buy out the other two. If the 2 children quitclaim the property over to the 3rd child, and she in turn pays them in cash, can she avoid a title change, and therefore a re-assessment. Also, will the 2 remaining children be responsible for capital gains taxes on their portions of the property?
The property is worth $1 million and is owned in thirds.
At the time the property was transferred to the children's trust, my father was entitled to a $600,000 lifetime exemption, so we are really only talking about capital gains for the 2 children on 2/3rds of $400,000 instead of the entire $1 million. Thanks for any ideas. Hal
Hi, I have a question regarding a property that is currently under a Children's trust as a result of the death of both my parents. This is a rental property that is now titled under a Children's trust but under the terms of the original living trust belongs to 3 surviving children. It has been this way for 10 years. Now, one of the children wants to buy out the other two. If the 2 children quitclaim the property over to the 3rd child, and she in turn pays them in cash, can she avoid a title change, and therefore a re-assessment. Also, will the 2 remaining children be responsible for capital gains taxes on their portions of the property?
The property is worth $1 million and is owned in thirds.
At the time the property was transferred to the children's trust, my father was entitled to a $600,000 lifetime exemption, so we are really only talking about capital gains for the 2 children on 2/3rds of $400,000 instead of the entire $1 million. Thanks for any ideas. Hal
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