Local Estate Planning Lawyer Jennifer Elliott Backs Senator’s Call For Two-Year Prop 19 Suspension – San Clemente, California

Jennifer Elliott, founder of San Clemente Estate Law, PC in San Clemente, CA, wrote her senator last December in an effort to protect her clients. For more information please visit https://sanclementeestatelaw.com

San Clemente, California, United States – March 22, 2021 /MM-REB/ —

A temporary delay is urgently needed on the new Proposition 19 law as a critical element of it could potentially wreak havoc on inter-generational property transfers, a San Clemente estate planning lawyer has said.

For more information please visit https://sanclementeestatelaw.com

Jennifer Elliott, of San Clemente Estate Law, P.C., wrote her senator last December in an effort to protect her clients. After hearing examples of families harmed by recently passed Prop 19, Senator Patricia Bates (R-Laguna Niguel), introduced Senate Bill 668 which calls for a two-year delay to the element of Prop 19 which significantly increases property taxes for children inheriting family property.

Prop 19 changed the 1986 constitutional amendment that allowed parents to transfer property to their children without changing the property tax bill. Under new laws, which became effective February 16 for inter-generational transfers, those same properties will be reassessed at the market value at the date of transfer.

Senator Bates introduced Senate Bill 668 to the California State Senate, seeking to repeal the current law and grant a two-year delay. This will enable homeowners to create special trust structures allowing their children to inherit their property while keeping the parent’s property tax base. The beneficial part of Prop 19, which allows those age 55 and older to transfer their tax basis up to three times, will not be repealed.

Elliott cited two cases in the face of Prop 19 that could have detrimental effects on families.

One client, a widowed schoolteacher, has had her home in her family for generations. She currently pays $850 per year in property taxes, but those taxes will rise to $16,500 based on the new law when she dies.

“Her daughter won’t be able to afford this huge increase in property taxes. This home that has been passed down through the family for generations may have to be sold,” Elliott commented.

In another case, a client who bought their home in 1954 for $14,000 will see their property taxes shoot up from $967 per year to $21,500 per year when they pass away and leave the property to their children.

“Under the current law, there would be zero re-assessment. These clients are not multi-millionaires but retired teachers,” she added. “This law was so poorly written that our assessor’s offices were not given the clarity to interpret or enforce the law.”

Their hardship, and that of thousands of other homeowners, have been exacerbated amid the pandemic’s chaos and the inability to seek financial and legal advice on the new laws.

Elliott added: “The additional two years will allow homeowners to learn how the law affects them, protect their property taxes for their children, and keep their legacy properties in the family for the next generation.

Senator Bates said, “While Prop. 19 is now law, the measure is silent on some issues regarding implementation. A two-year delay will give the state time to clarify how it will implement the ‘Property Tax Fairness for Family Homes’ provision.”

Elliott is urging homeowners to go to this link to locate their Senator and encourage their written support in favor of Senate Bill 668.

Source: http://RecommendedExperts.biz

Contact Info:
Name: Jennifer Elliott
Email: Send Email
Organization: San Clemente Estate Law, P.C.
Address: 100 S Ola Vista Suite A, San Clemente, CA 92672
Phone: (949) 420-0025
Website: https://sanclementeestatelaw.com

Source: MM-REB

Release ID: 89001400