URGENT UPDATES

Prop 19 Client Information Worksheet.docx

Prop 19 Client Information Worksheet.pdf

Email completed Information Worksheet and recent California property tax bill(s) to contact@hmmlegal.com

In our recent letter to our clients we informed you of two urgent issues:

  1. Prop 19 took away your ability to transfer your lower Prop 13 property taxes to your children. This change in law affects our clients who desire to pass their Prop 13 property tax basis to their children after they pass away. We have a deadline of February 15, 2021 to deal with the Prop 19 issue.
  2. Biden wants to lower the estate tax exemption to $3.5 million. You can make sure you keep your larger estate tax exemption if you do something by December 31, 2020. For clients with estates near or exceeding $3.5 million, you may want to take action before the end of this year.

We offered a 30 minute phone or zoom appointment and requested that you provide us with certain information so we could decide what we need to do.

We have had an extremely high volume of responses.

It is imperative that prior to our meeting that we have received the “Prop 19 Client Information Worksheet” and copies of your most recent California property tax bills.

Prior to setting the appointment, or if you have already made an appointment, we request that you fill out and return the “Prop 19 Client Information Worksheet” and your most recent property tax bill(s). A Microsoft Word document version and an alternate PDF version is attached. Use the version that works best for you.

Please download and fill out either the PDF or Microsoft Word document version and email it with your most recent property tax bill(s) to contact@hmmlegal.com. Make sure that your first and last name appear in the subject or body of that email. After we have received the worksheet and most recent property tax bill(s), we will contact you and set your 30 minute appointment with the attorney. This will streamline our efforts to help you.

For those who need special assistance please do not hesitate to call us at (626) 445-1212. Thank you for your understanding. We look forward to meeting with you!

Email completed Information Worksheet and recent California property tax bill(s) to contact@hmmlegal.com

A Little More About These Issues And Other Concerns

1)      Prop 19. Your beneficiaries’ property taxes will increase after you die. California Proposition 19 drastically reduces the protections of the old proposition 13 (from 1978), that has kept your property taxes low for over 40 years. These changes affect your children after you pass. Prop 19 does not take effect until February 16, 2021. There is time to save Prop 13 for your children. But you have to start the process now if you expect to complete the process before February 16, 2021. It takes time to design a plan and complete that plan before the deadline. Call us now to set an appointment to go over what you need to do.

2)     Biden’s plan – Estate and Gift Tax Increase. Biden plans to increase estate taxes (“death tax”) by reducing the estate tax exemption to $3.5 million and increase the tax rate to 45%. Biden also plans to increase gift taxes (the tax for transfers while you are alive) by lowering the exemption to only $1 million. You can keep the current exemption if you act prior to December 31, 2020. Also, If you have a spouse who passed away less than 2 years ago, you should file to keep their exemption immediately.

3)     Funding the Living Trust. Have you properly “funded”, transferred your assets into, your trust? One of the worst mistakes with a Living Trust is creating the Trust but not properly funding the Trust. We recommend you review the title of your assets and beneficiary designations to make sure you have not left anything out of your Trust. Go to our website to view the trust Funding Instructions.

5)     Review your Estate Plan. Make sure you deal with lingering issues:

  • My spouse passed away and I haven’t done anything about it yet.
  • It’s been 3 to 5 years since my Living Trust was reviewed.
  • I have purchased new property and didn’t include it in my trust yet.
  • My Beneficiaries have changed their names, passed away, or have had a change in life circumstances and I need to change how they will receive their inheritance.
  • I need to change my Successor Trustee(s) – I no longer think they would be the best fit as the “manager” of my Trust, they passed away, we no longer speak, divorce or marriage has complicated my previous decision, or I want to name my children now that they have become mature adults.
  • A-B Trust – If you currently have an A-B trust you should consult with your attorney to make sure it is still the right vehicle for your estate plan.
  • Protecting Your Estate from In-Laws. Many people are concerned about divorces, separations and re-marriages causing their estate to be shared with the wrong people.

SUMMARY

We recommend you contact us now and take immediate action to save your Prop 13 taxes for your children. The deadlines of December 31, 2020 and February 15, 2021 are real.

We also invite you to attend one of our complimentary live webinars. If you wish to speak individually with one of our attorneys, It is imperative that prior to our meeting that we have received the “Prop 19 Client Information Worksheet” and copies of your most recent California property tax bills.

Prop 19 Client Information Worksheet.docx

Prop 19 Client Information Worksheet.pdf

Email completed Information Worksheet and recent California property tax bill(s) to contact@hmmlegal.com

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