Don’t miss out on your chance for a second step-up in basis. We’ve discussed the new federal Estate Tax exclusion changes. We’ve mentioned that you might consider consulting with an attorney specializing in estate planning to go over your estate plans now. See, many couples created two trusts. One trust uses the first-to-die’s estate tax exemption. This is for the benefit of the surviving spouse, but it’s not included in the estate. This type of trust is a Bypass Trust or a Credit Shelter Trust.
With new tax changes though, it may no longer maximize income tax planning. So, this trust, as mentioned earlier, isn’t included in the surviving spouse’s estate. Consequently, you may miss an opportunity for a second step-up in basis for no reason. It made sense before, since the exclusion amount was set lower. Now, it may not.
Bypass Trusts Can’t Make Good Use Of The Step-Up In Basis Rule
As mentioned in a previous post, new federal tax law changes kept the step-up in basis rule. So, even with the exclusion amount doubled, heirs still aren’t responsible for a capital gains tax on the appreciation in the value of the estate that happened before it became theirs. So, your heirs could have the opportunity to avoid all tax on all of the years of appreciation prior to all transfers, because the property in the Bypass Trust is not a part of the estate. You don’t want to miss out on the second step-up in basis opportunity for no reason. Please consult with an attorney specializing in estate planning.
Do You Need A California Realtor Specializing In Probate?
We are experts in the probate sale under the probate code and trust law. So, we know the California Probate Code. We won’t let you get lost in it. If you need a realtor in California specializing in probate, please contact us today! We are upfront and honest about the costs of probate. Everyone wants to know about probate fees, but no one wants to talk about them. We will though. Sentinel Realty Partners wants our clients to be fully prepared and fully informed about buying or selling California probate real estate.
We have a list of the absolute best probate lawyers in California available for our customers. Plus, we also have relationships with the most vetted contractors, plumbers and electricians in California. See? We will guide you through every step of the process of selling (or even purchasing) a home involved in probate.
If you are buying a home in California, please have a look at our probate property search. If you need a Los Angeles, Orange County, Riverside, or San Bernardino professional to help you through the probate real estate maze, call us! These waters a murky, and you’ll want a knowledgeable, dependable, responsive team behind you. Check out Sentinel Realty Partners’ client reviews.