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Posted by Jeremy Swanson
On July 19, 2016

Does Putting Property Into A Trust Change My Tax Liabilities?

Putting property into a trust does NOT change your tax liabilities. Any income from property in the trust (such as rents from houses, profits from stock shares, or other income) will be taxed on your personal taxes just like it was before you created the trust and put the property into it.

Additionally, your property tax will not be re-assessed or increased when you transfer houses or land into the trust because California has an exemption to reassessment for property moved into a personal or family trust. You can expect no changes in your tax status from creating a trust and placing property in the trust.

DISCLAIMER: All legal principles quoted are valid as of the date of writing in the State of California. However, you should NEVER base your actions on a legal article, blog, or internet story, as facts in real life are complicated. You should have your case evaluated by an attorney experienced in the area of law needed for your case. In addition, there are often exceptions and potential changes to results that occur due to facts that you may think are trivial or unimportant. This article should not be taken in any way as legal advice on your specific legal matter.

NOTICE: This blog and all materials on our website constitute advertisement materials, and the promulgation of such materials is meant of the residents of the State of California only. The attorneys and this firm to not practice law in any other state. In addition, the promulgation of these articles does not in any way create an attorney-client relationship and any inquiries and information you may send to the attorneys should be general and not specific, as it is not confidential.

Read our previous post here