Estate Planning

bag of money next to up arrow and a model house (inferring housing prices going up)

Navigating Fair Market Rent Calculations During California’s Price Gouging Protections

January 27, 2025
devinlucas

Under California Penal Code Section 396, rental price increases during a declared state of emergency are limited to 10%, with the base rent determined by prior rental history or fair market rent (FMR) as defined by HUD. If a property hasn’t been rented in the past year, the allowable base rent defaults to 160% of the HUD fair market rent. The choice between county-wide FMRs and Small Area FMRs (SAFMRs) depends on local market conditions, with SAFMRs providing more granular, ZIP code-specific data.

last will and testament white printer paper

Understanding Heggstad Petitions: Securing Real Property for Your Trust

August 18, 2024
devinlucas

In Newport Beach and Coastal Orange County, it’s not uncommon for property owners to overlook transferring real estate into a trust before passing. A Heggstad petition can resolve this issue by allowing the property to be added to the trust without going through probate. Discover how Lucas Real Estate can assist you in securing your real property efficiently and effectively.

a scrabble arrangement spelling "probate"

Understanding Probate

July 2, 2024
devinlucas

Navigating probate in Newport Beach and the Orange County coastal areas can be complex, especially in the luxury real estate market. Our guide simplifies the process, ensuring your high-end property transactions are smooth and legally sound. Learn how probate affects property sales, the necessary documentation, and the steps involved in estate administration. Whether you’re a homeowner, buyer, or real estate professional, understanding probate is crucial for seamless transactions in the upscale Newport Beach market.

Repeal the Death Tax Initiative: Petitions Now Available! (to repeal the death tax aspect of Prop 19)

November 27, 2023
devinlucas

Now available! The official Howard Jarvis Taxpayers Association legal petition to get the Repeal the Death Tax initiative on the November 2024 ballot is here!

California’s New(ish) Transfer on Death Deed May Be An Ideal Solution For Easy Estate Planning, But Carries a Host of New Requirements for Compliance and Has Limitations

July 16, 2023
devinlucas

This is an update to our earlier article on the 2016 implication of the Transfer on Death Deed in California. What is a Transfer on Death Deed Simply put, a Transfer on Death Deed (or “Revokable Transfer on Death Deed” or “TOD”) it is a deed, recorded on your property’s title, that allows for a … Continue Reading

Can I Sell My House To My Child (Or Anyone) Below Fair Market Value? / Can I Do A Gift Of Equity?

February 11, 2023
devinlucas

Yes! Indeed, many owners elect to gift or partially gift their homes to their children now, for many reasons, including current favorable gift tax allowances / exemptions. A gift of equity is a remarkably easy way to allow your child to obtain a traditional loan without any down payment….

Picture of money with a red line drawn through

California Temporarily Waives LLC Initial Filing Fees AND First Year’s $800 Minimum Tax – A Excellent Way to Hold Real Estate Just Got Even Better

December 8, 2022
devinlucas

Effective until June 30, 2023, California is waiving the traditional $70 filing fee to form a California Limited Liability Company, or “LLC.” Even better – The annual minimum $800 tax to the California Franchise Tax Board is also waived for the first year.

tax time graphic with calculator in front

Understanding Capital Gains Taxes in Real Estate Sales and Using the IRS Section 121 Exclusion (aka the Homeowners Exemption or Homeowners Exclusion) Saving $250,000 or $500,000 of Taxable Gains

July 1, 2022
devinlucas

IRS Section 121 allows a reduction of potential capital gains taxes by $250,000 for single filers and $500,000 for married filing jointly filers when certain tests are met for the sale of your primary residence.

Navigating New California Proposition 19: Its Dramatic Property Tax Increase on Inherited Property and Added Benefits to Portability For Those 55 and Older

November 29, 2021
devinlucas

Editorial Summary

California Proposition 19 is a massive property tax hike on the next generation of property owners. It wipes out the current Proposition 58 and Proposition 193 family transfer benefits, effective February 16, 2021. This is potentially the largest property tax increase in California history… but it will only impact the next generations; this is a new death tax and inheritance tax on real property owners’ heirs.

estate plan image with illustrated family passing home to next generation

Intra Family Sale and/or Gifting of Real Estate in California (Propositions 13, 58, 193, 60 and 90 and new Proposition 19)

October 21, 2020
devinlucas

Lucas Real Estate – Attorney Devin Lucas and CPA Courtney Lucas – are experts in California intra family transfers using all aspects of Propositions 13, 58, 193 60 and 90 and new Proposition 19. Learn more about how Lucas Real Estate may help by clicking here. WARNING — CALIFORNIA PROPOSITION 19 HAS UPENDED THIS ENTIRE … Continue Reading

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