In California, when siblings jointly inherit a property, they are presented with multiple alternatives to allocate the asset among themselves. One such method is for one sibling to acquire the other siblings’ stakes in the property. However, if done incorrectly, this approach may trigger a property tax reassessment, leading to a substantial increase in property taxes.
In this blog post, we will delve into the utilization of third-party loans as a strategy to buy out the inherited property shares of siblings, while concurrently safeguarding the property tax basis.
SOURCE: HCS Equity