Fair points - we have many friends and relatives in Florida (though they complain about the twice-annual hurricanes that they say regularly freak them out!). That said, as long as one stays in their home, Prop 13 still applies in California, limiting property tax increases to only 2%/year. Prop 19 impacts inheriting family members, however. But we certainly get it - Florida has no income tax. For those who wish to hold onto California properties across generations, we can help to preserve low property taxes.

Prop 13 is still law. Prop 19 only presents a problem when a property is transferred from parent-child. These transfers used to be exempt from property tax increases - prop 19 dramatically limits the protection. Talk to us if you have questions - we've helped 100s of California families with this issue!

We get the frustration! But this was actually passed by voters - though many didn't truly understand what they were voting for. Thanks for watching!

@ ..frustrated is not the word I would use ..I don’t trust the elections in this state ..at all ..and any legislation that benefits this money hungry legislature will get passed ..by hook or..or crook

This is obviously a joke. Or you just transferred all your assets to a hacker :) Estate planning for crypto is a very important issue - we will do videos on this soon - so stay tuned!

It was crazy. We are so thankful to our rescuers!

Wow - we didn't know it was so strict in the UK. Thanks for watching!

We would not typically recommend this - this could trigger an immediate reassessment of property taxes and could result in the loss of the key "step up" in cost basis (which can eliminate capital gains tax exposure). We have helped 100s of California families with this issue - there are ways to avoid reassessments, but we do not typically recommend adding a child to title while you are living, for this purpose. We'd need to know more about your situation to give proper guidance, however, so reach out to us at gilfix.com if you'd like to set a meeting with one of our attorneys. Thanks for watching!

Indeed, homelessness is a major issue in California - prop 19 doesn't help.

Thank you! We provide good tax education to all families. Thank you for watching :)

If a parent transfers a property to a child while they are living, there would be no "step up" in cost basis when the parent passed way. For an asset to get a "step up" in cost basis, it must be in the decedent's estate at the time of their death. Always speak with an accountant or attorney when making decisions around these issues. If you live in California, we can help!

Thanks for watching! We hope to spread the word about good longevity practices.

Absolutely - we are thankful every day for our rescuers!

Very true. But so many of our clients worked hard for decades, and made incredible sacrifices to provide financial security for future generations. Every family is different though, and some children appreciate and use their inheritance the right way, while others blow it all. Good communication and planning helps massively. Thanks for watching!

Thank you so much! We had guardian angels that day :)

Saludos! Gracias por mirar :)

We certainly had angels watching over us that day - we are beyond thankful for it :)

Greetings from California!

It was terrifying! And we are SO THANKFUL for Santi and his amazing friends! We have said many prayers of thank you for them :)

We agree! We are BEYOND LUCKY that they were there for us. We shudder to think what would have happened if it they hadn't been there. We very likely wouldn't be here today.

He is an *amazing* guy and we are thankful, every day, for what he and his friends did for us on that fateful hike. They stepped up, without thinking. Thank you again, Santi! And thanks for watching :)

Thank you! And contact us at gilfix.com if you'd like to see how we can help you to update your living trust!

We certainly understand that point of view. That said, many of our clients are first generation immigrants who worked incredibly hard for decades to buy rental property. They took huge risks, and take on major expenses in maintaining properties, and many are not wealthy. At any rate, prop 33 was defeated by a large margin, so rent control is not coming to single family homes in California. Thanks for watching!

Not sure if this is facetious (we will choose to believe it is genuine, very high praise! :), but yes, we have developed processes and custom trusts that can help families to preserve low property taxes for the next generation. And no, these didn't exist even a 3 years ago, and we developed them in-house. So, quite literally, we have developed new types of trusts and strategies to save families $hundreds of thousands in future property taxes. It is a very challenging problem that our tax team has helped solve for many, many California families. Than you again for the very high praise! ; )

We agree - too many complex issues are decided based on voter initiatives, where the vast majority of the population doesn't have the time or expertise to properly weigh in. Most initiatives pass or don't pass based on which side spends more on ads. Not great for our state's future, but the law is the law. We will do our best to keep our community informed of future initatives!

Many hate the estate tax, but it likely isn't going anywhere. That being said, at current levels, most families will not face an issue. The exemption (amount that can be passed tax free) is $13.61 million per person in 2024. That said, the exemption may drop dramatically in coming years. Stay tuned - we will work to keep our community updated.

@ that being said the tax has huge effect on everyone. Because it forces large companies to be split up to pay for taxes. This tax is also one of the reason American companies are moving to other countries. These taxes are always placed by politicians that refuse to believe taxes affects behavior much less trying to assess what the stage two affect and beyond will be.

It's never a bad idea to be extra cautious! Always work with an accountant and get expert guidance on your own taxes. This is just educational - every individual's situation can be different or nuanced. Thanks for watching!

Or better yet, whether one supports or does not support Prop 33, VOTE! Make sure your voice is heard. (Far better than crying, in our opinion).

Actually, living in California is fantastic. We have gorgeous beaches, mountains, forests, cultural centers and some of the best schools in the world. We are big fans of our state. That being said, like any state, California certainly has its issues - and confusing ballot initiatives certainly don't help. Thanks for watching!

Correct - this ONLY applies in the US, under current law. We are not familiar with Canadian law, though we understand it is far different from US law on this issue. Always work with an expert in your home area to make sure you are getting great advice. Thanks for watching!

Was thinking the same thing.

Fair points, though California already has state-wide rent controls on all properties (max annual increase is 5% plus inflation, or 10% max per year). We are worried for renters because, in the long term, according to the vast majority of economists, the possibility of strict rent control on even new buildings will put a major chill on new housing in development in California, making it much harder for the next generation to find housing (or for anyone thinking of moving to the state). That being said, everyone must get educated and vote on this based on what they think is right! Thanks for watching.

Very true! That being said, the current exemption (the amount that can be passed tax free) is $13.61 million per person. As we tell our clients who face this issue, "it is a good problem to have." But it IS a problem if you are fortunate enough to have a large estate. And the exemption may drop in coming years. Stay tuned - we will keep our community up to date on this issue. Thanks for watching!

Setting up a living trust (which is the right way to go for the vast majority of families) to hold title to one's home typically doesn't require any annual fees, unless a professional trustee is appointed to oversee the trust. Indeed, professional trustees typically charge 1% or more in annual fees for assets managed in trust. That said, for the majority of families, a professional trustee isn't needed. The owners themselves can serve as their own trustees. Always work with an attorney when reviewing these issues - every situation can be different. Thanks for watching!

If a family doesn't take steps to plan ahead to protect low property taxes (we can help!) then the local assessor's office would assign a new fair market value to a home after it transfers from parents to kids, upon which new property taxes would be based. This often means a MASSIVE increase in taxes for the next generation. You can challenge their valuations, but it is not easy. Far better to work ahead of time, with experts, to preserve low taxes, so this is not an issue. We have helped many California families with this. Thanks for watching!

The psychology of money is extremely important to understand and address. Having a financial therapist can help, no matter how much you have. Thanks for watching!

Fair point! Every couple is different, but from a legal perspective, these aren't always a good idea. Key to have a good advisory team (financial and legal) to make sure you are taking the right steps. Thanks for watching!

A reverse mortgage would not solve this issue. And be careful with these - see our short about reverse mortgages: kzbin.infoSxoC02I--gc?si=CJsFsOByMKqvJJCV Taking out a reverse mortgage, or any other loan, doesn't change cost basis, even when paid off (you aren't selling your home to the bank when you get the loan, nor are you buying it back when you pay the loan off. If you did, you'd face capital gains tax issues when taking out a loan). We admire your creative thinking! But always work with an attorney and/or tax professional before making decisions about these types of issues. Thanks for watching!

What about simply selling an asset to a 3rd party? Assets clearly have value if someone else (government or not) is willing to pay for them. And it is crucial to plan ahead with good advice from the right attorneys and financial advisors. That being said, the government does LOVE to tax us on these types of sales. But holding until after a someone passes away (not always possible) can often eliminate capital gains tax issues - hence our video. Thanks for watching!

Most families aren't even aware of this new law! We hope to educate Californians about this. Our firm (Gilfix & La Poll Associates) has developed some amazing solutions to this problem, but most families don't even know to get expert help. Or, they contact us after it is too late. Indeed, this is a major problem for families who wish to simply pass California properties to their kids...unless they work with experts to solve it ahead of time. Thanks for watching!

Every country has different laws - our video only applies to US-based planning issues. And US laws can change over time as well, so we must stay on top of it. Subscribe and keep watching - we will do our very best to keep families up to date about these issues and laws. Thanks for watching!

Interestingly, Prop 19 was passed by California voters, so California politicians actually had little to do with this law. And because it was passed by voters, politicians cannot change or overturn this law. Crucial to plan ahead with experts to preserve low taxes - this can still be achieved, but it must happen before a property passes to the next generation. We have helped many, many California families with sophisticated solutions to this problem. Thanks for watching!