A recent legacy case illustrates how Proposition 19 impacts grandparents wishing to leave their family vineyard property to their granddaughter.

Change in the Law
Effective February 16, 2021, Prop. 19 modified the reassessment exclusion for parents and grandparents wishing to pass down their property to their children or grandchildren who were not going to live there, leaving certain estates vulnerable.

What About the Exclusion Limits?
Prior to Prop. 19, primary residences of unlimited value could be transferred avoiding reassessment up to an additional $1 million of assessed value. This also had zero requirement that the child lives at that property. … Read More

Estate Planning

We can work with you to review your business, real estate, and family holdings for tax issues to craft and maintain your succession plan for life, and what comes after.

Top 10 Year-end Estate Planning Checklist

1. Personal Status ‒ My health, wealth, and chosen decision-makers are still the same  Yes  No
2. Legal Guardians ‒ The legal guardians I’ve selected for my minor children are up to date and consistent with my wishes?  Yes  No
3. Legal Documents ‒ I have my legal documents in place including a power of attorney, health care directive, will and (when needed) trust  Yes 

Prop 19 & Entities: Legal Update and Estate Planning Strategy

One of the major exclusions from property reassessment is the exclusion of real property that is owned by a legal entity, such as a corporation, partnership, or LLC, as provided in Revenue & Taxation Code section 64. In a nutshell, it provides that when realty is owned by a legal entity, certain changes in the ownership of the entity do not constate sale of the realty itself, unless a new person or entity gains control of the entity. For example, if real property is owned by a corporation, shares of … Read More

The December relief package created a second draw for businesses that have exhausted their PPP.  This PPP list includes an Expanded List of Expenses Qualifying for Forgiveness.  The list of expenses that PPP funds can be used for that qualify for loan forgiveness has been expanded to include: 

• “operations expenses” defined as payments for business software and cloud computing services and other human resources and accounting needs that facilitate business operations; 
• “supplier costs” defined as payments to a supplier for goods that are essential to the operations of the borrower pursuant to a contract or purchase order in effect before