Any real estate law experts on here?
Here’s the deal. My sister will inherit our parents’ house when my Dad passes (hopefully a LONG time from now!). My Mom passed away almost 20 years ago and at the time, the house was paid off. My Dad remarried down the road, and has said verbally that the house is ours when him and his new wife are gone but she gets to stay if he passes first as long as she doesn’t remarry. Both him and his new wife have said that is what is to happen, but nothing has been put on paper and there hasn’t been a will/trust created. My Dad is extremely old school and says this is what he wants so that’s the way it is. My sister and I are on good terms and aren’t worried about one of us taking over the house or any belongings without the other one knowing – no problem there.
Where the potential problem could be is with the new wife’s family. Am I correct in assuming since my Dad and his new wife are legally married that whatever is left when they’re both gone could technically be split 50/50 with my sister and I and the new wife’s kids? He also has a sizeable pension/401K that the new wife’s family could try to get as well right? There was never a pre-nuptial or anything and 99% of his wealth and assets were from before he remarried. She brought very little to the table financially as I understand it…
We’ve asked my Dad to put one of us on the title for the house but he hasn’t done anything. We also tried to get him to do a living trust/will/etc but he hasn’t done anything. Like I said – he’s old school where a hand shake means everything. I’ve explained to him that doesn’t mean squat when he’s gone – everybody gets greedy when free shit is on the line!
Now enter Prop 19. Since his house was bought for around $40k and has been paid off for a long time his property taxes are barely over $1k. As I understand it, with Prop 19 taking effect in Feb 2021 once we inherit the house it will be reassessed (~$700k value now) so the taxes would jump nearly $6k per year right away. If either my sister or I are on the title before Feb would we be able to avoid that reassessment down the road? What do we need to do?
Sorry for the long explanation but any input would be appreciated.
Here’s the deal. My sister will inherit our parents’ house when my Dad passes (hopefully a LONG time from now!). My Mom passed away almost 20 years ago and at the time, the house was paid off. My Dad remarried down the road, and has said verbally that the house is ours when him and his new wife are gone but she gets to stay if he passes first as long as she doesn’t remarry. Both him and his new wife have said that is what is to happen, but nothing has been put on paper and there hasn’t been a will/trust created. My Dad is extremely old school and says this is what he wants so that’s the way it is. My sister and I are on good terms and aren’t worried about one of us taking over the house or any belongings without the other one knowing – no problem there.
Where the potential problem could be is with the new wife’s family. Am I correct in assuming since my Dad and his new wife are legally married that whatever is left when they’re both gone could technically be split 50/50 with my sister and I and the new wife’s kids? He also has a sizeable pension/401K that the new wife’s family could try to get as well right? There was never a pre-nuptial or anything and 99% of his wealth and assets were from before he remarried. She brought very little to the table financially as I understand it…
We’ve asked my Dad to put one of us on the title for the house but he hasn’t done anything. We also tried to get him to do a living trust/will/etc but he hasn’t done anything. Like I said – he’s old school where a hand shake means everything. I’ve explained to him that doesn’t mean squat when he’s gone – everybody gets greedy when free shit is on the line!
Now enter Prop 19. Since his house was bought for around $40k and has been paid off for a long time his property taxes are barely over $1k. As I understand it, with Prop 19 taking effect in Feb 2021 once we inherit the house it will be reassessed (~$700k value now) so the taxes would jump nearly $6k per year right away. If either my sister or I are on the title before Feb would we be able to avoid that reassessment down the road? What do we need to do?
Sorry for the long explanation but any input would be appreciated.