I Sold My Father's Property as the Successor Trustee – Part 2, Proposition 58

Continued from I Sold My Father's Property as the Successor Trustee.

As a real estate agent, I knew all about Proposition 58, and how it allowed for children to have the same property tax rate after they either buy or inherit their parents’ home.  I had even advised clients in the past about Prop 58.  Since I knew that my sisters and I were going to sell the property, and not keep it, I neglected to file the application for the Prop 58 exclusion from an increase in property taxes.  I figured we would sell it before any new taxes would be charged.

The Los Angeles County Tax Assessor requires people to notify them of a home owner’s death by submitting a Change of Ownership form within 150 days of the death.  I complied by sending it in within the first 2 months.  No problem.

I didn’t realize that sending in that Change of Ownership form would cause the Assessor to reassess the property tax rate, because I had failed to file for the Prop 58 exclusion.

So, a week before we were scheduled to close escrow I received a new Supplemental Tax bill from the Assessor for the difference in tax rates.  Since it was so close to the close of escrow date, I had the escrow company pay the tax at closing.  My application for Prop 58 had already been submitted, but it wasn’t approved until a couple weeks later.

You can now learn from my mistake.  Don’t delay filing the application for the Prop 58 exclusion. 

All is well now, and I’m just waiting on the Assessor to send me the check.  Isn’t it funny how they want their money right away, but they aren’t in any big hurry to write a check back to the home owners?

Disclaimer:  I am not an attorney or tax advisor.  Please seek the advice of an attorney or tax advisor for situations related to legal or tax matters.

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Thank you for reading the above post on how I handled the sale of my father’s home as a successor trustee.

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