Retiring in California: How Does it Work and Is it for You?

[@DC10418]

I am falling in love with California in a whole new way now that I’m retired and able to travel all around the state. It is such a beautiful and diverse state in so many ways.

[@CunninghamLegal]

That's wonderful!

[@retirement-f3w]

I am a school teacher in Southern California retiring in 2026. I have spent my entire life in California and plan on staying. I have already purchased a retirement home in a 55 and over community in Northern California. I have no desire to live in any other state.

[@CunninghamLegal]

That's wonderful! Thanks for sharing your story.

[@JacquilynSaito]

This video is literally a godsend. My mom lives in L.A. and is in poor health and qualifies for Medi-Medi. I moved to Portland, Oregon 33 years ago and comparing the benefits between the two states is mind blowing. I think there is another definition for “re-settler” - a California native who moved away for many decades and plans to move back to California.

[@LWRC]

Once you move out of Kalifornia, it would be very very hard to come back for the costs can get out of hand pretty quickly. Real estate outside CA doesn't grow as fast!

[@JacquilynSaito]

@@LWRC Other than fuel, eating out and groceries are on par with Portland. I am considered a high earner in Portland but would be considered low income in L.A. Between the rain and hare-brained politics, I’m done. But you have a good point, I need to more fully research my relocation plan.

[@f430ferrari5]

⁠@@LWRCnot necessarily. You responded to a person who indeed moved out of state to Oregon. You had to have seen where his ailing mom is still in California. Perhaps what was not clearly mentioned is that his mom is a homeowner. The plan is for many to move back to California and simply live in the home they grew up in. Some adult kids may actually be fighting over the house also. By doing this one can retain the low property taxes which is key. Gavin Newsom/Democrats don’t like this because they want their higher taxes to pocket the money.

[@CunninghamLegal]

I'm glad we were able to offer a new perspective!

[@JBoy340a]

I love Prop 13. I have been in the house for 30 years and still paying taxes largely based on the purchase price with a 1% or so yearly increase in the tax bill.

[@CunninghamLegal]

That's great! We have a lot of videos on Prop 13/Prop 19 on our channel: kzbin.info/aero/PLAoOpG0ejJDdbZcbpUSqTupNVvB6tG5M6 Thanks for leaving a comment.

[@gretchenbond784]

We moved my father-in-law from a nursing home in Nevada to California so he could qualify for Medi-Cal. Best decision ever.

[@CunninghamLegal]

I'm glad you were able to find something that worked for your family! Medi-Cal can be great.

[@ScottsdaleMark]

I would love to see a video on how to put together (find) an A Team. It’s tough to do for an out of state resident wanting to retire in CA.

[@CunninghamLegal]

We actually have a video on that! Take a look: kzbin.info/www/bejne/rJetf2tvqLSZrsU

[@MWIT]

Just made an offer on a home in rural CA, moving from MI We just retired and live mostly on SS. We compared all costs and the things that are higher in CA like gas, electricity, goods, labor and sales tax are offset with lower property taxes. That's the thing to research. Food is a little more for some things but less for others. There are also a lot more regulations in CA but at the same time, a lot of incentives to go green. Homeless is a big problem but I don't see it in the rural areas. Housing for us we got more house for less in a 55+ community but looking at single family homes theyre 20-25% or so higher. (Again rural area about an hour outside SF) To us climate was the factor and bottom line at least for us on paper was about $200/mo savings compared to West Michigan (Grand Rapids area) I'll let you know when we have some months in the rear view mirror. Hopefully our thorough homework was accurate.

[@CunninghamLegal]

Good luck with the offer on your new home! Rural California has such diverse beauty and the climate is definitely a major plus. I'm optimistic that you'll enjoy your new home and community.

[@bman6502]

If you love the outdoors, you made a great choice

[@worldchanges10]

Helpful information for a million less senior living in CA on the medical and property tax transfer

[@CunninghamLegal]

I'm glad you enjoyed it! California's programs for seniors that can be incredibly helpful.

[@redexit0707]

Live in California..Can't wait to retire and leave California..You have to be rich or poor to stay. No middle class.

[@bashorttimer]

Not Rich or Poor, we just planned. Now enjoying life in California and just visit the rest.

[@CunninghamLegal]

Nice! Planning is key.

[@flashoflight8160]

Middle class. We planned. We are staying.

[@aegisonms]

Do you have any videos on taxation and taking advantage of Bitcoin

[@CunninghamLegal]

We do have a video from 2021 about investing in Cryptocurrency, but please be advised that it is an older video: kzbin.info/www/bejne/e33Ih4yopK96h9U and we also have a blog on our website about this: www.cunninghamlegal.com/investing-in-cryptocurrency/

[@carmenthiemann1497]

is this for 2024? death tax now inheritance tax? is that true?

[@CunninghamLegal]

It's technically a Federal Estate Tax, but it has been nicknamed a few other things: Death Tax, Inheritance Tax, etc. It's the taxes that a person needs to pay on money or property that they have inherited after the death of a loved one (paid by the beneficiary, typically out of the estate). Most relatively simple estates (cash, small amounts of other easily valued assets, or jointly held property) do not require the filing of an estate tax return. You'll need to file if the gross estate (total fair market value) is over $13.61 M in 2024. California has no State "Death Tax" or "Estate Tax", whereas Oregon, for example, charges an estate tax ranging from 10% to 16% on estates that are valued at more than $1 million. Here's a little more information from the IRS: www.irs.gov/businesses/small-businesses-self-employed/estate-tax

[@CunninghamLegal]

Saying it another way, “Death Tax” is a broader category of tax than “Estate Tax.” “Estate Tax” solely refers to the Federal Estate Tax. “Death Tax” includes state death and inheritance taxes and has also been more broadly applied to the reassessment of real property at death in California, as well as missing out on a “full adjusted costs basis” at death because property was held as joint tenants or otherwise excluded from a decedent’s taxable estate.

[@TrishaRico]

California resident here...What happens to the cost basis if both spouses on are title but you put the title in a trust? Say the trust indicates a 50/50 split to spouse and adult child. Thanks

[@CunninghamLegal]

Generally speaking, under most circumstances the property gets a full adjusted cost basis if in a trust on the date of death for the first spouse. *This is NOT legal advice. We have more information on Prop 19 on our channel: kzbin.info/www/bejne/nYG9gqKkhrJrqKs

[@Farhancanopyone]

What’s the process to find the A team?

[@CunninghamLegal]

We have a video on this! Watch Assembling your A-Team of Advisors: kzbin.info/www/bejne/rJetf2tvqLSZrsU

[@time2heal]

I was thinking about retiring in Peru, but after watching this video I think I'll stay put. Maybe live there for a couple of years and come back?

[@CunninghamLegal]

Leaving California for a while can make sense for many people. Maybe even you! One chief advantage of being out of California and effectuating a ROTH conversion is that you escape California taxation when you do the ROTH conversion. When you move back in, no California (or Federal) Income tax on distributions from your ROTH!

[@karentiong5545]

Is it possible that California can have tax free food and groceries like other states?

[@CunninghamLegal]

California already offers partial relief in this area. The state exempts most groceries from sales tax, but there are exceptions. For example, prepared foods (like deli items or restaurant meals) and some beverages (such as alcohol or sodas) are subject to sales tax.

[@evelynmoore781]

Six siblings inherited parents home after death, two siblings have lived in parents home for the last ten years. Does the home qualify for an excursion on reassessment on property taxes because of siblings living in home?. The home is in a Trust.

[@CunninghamLegal]

There is not enough information to answer your question. Generally speaking, if a parent died before February 15, 2021, the prior law (Prop 58) applied that exempted the family home entirely from reassessment. However, it depends on the terms of the trust. If the trust leaves the home to just the children, that’s a good thing. If the assessor has not contacted you YET, another good thing. Your family needs “trust administration” right now. Do not delay. You should speak with an attorney about this. If you are not represented feel free to reach out to us. It MAY not be too late. On the other hand, depending on what has happened after death, there may be partial or full reassessment.

[@stonemdrmdr8315]

No SS tax in California? I don’t think that’s correct….

[@CunninghamLegal]

Social security benefits are NOT taxable by the State of California! Social security benefits may be taxable by the FEDERAL government. Read here: www.taxes.ca.gov/Income_Tax/specialind.html#:~:text=Social%20security%20benefits%20are%20not,on%20the%2Djob%2Dinjury.

[@stonemdrmdr8315]

@@CunninghamLegalThank you very much for the clarification. I learn a lot from your videos.

[@CunninghamLegal]

@@stonemdrmdr8315 Of course! Thanks for commenting and be sure to subscribe.