Online Accounting Services

Fast, Reliable, and Accurate online accounting service helps to make better financial decisions. We offer accurate bookkeeping, financial reporting, tax preparation, and budgeting assistance, all through a secure and user-friendly online platform.

Quality Services At A Feasible Price.

To discuss your requirements, please contact us through chat or email.

Bookkeeping Services

Focus more on your business by Virtual Bookkeeping Services. Get the customized solution you need to make smart financial decisions.

The PTS seamlessly helps you to manage different individual & business taxes with Tax Preparation Services.

Tax Preparation
All Kind of Online Accounting & Bookkeeping Services Under One Roof

USA | UK | AUSTRALIA

USA

Our Experience, Skills & Expertise

335+

Happy Clients

150+

Projects Finished

Experience

15+

”Absolutely fantastic! The PTS team delivered exactly what I was looking for and more. Highly recommend!

- Christy White

Here's what our customers say

”The PTS team is very fast and competent. If you need your 1120 taxes delivered promptly, this person is the one for you!

- Carlos Allen

The service received was very fast, very complete and very personalized. The communication was very clear and timely and all my doubts were cleared up. I am very happy to find such a reliable person for this and my next tax returns.

- Gonellic

Read The Latest Tax News

Personal Tax & Business Tax News

                                                                 Does Putting Property in an Irrevocable Trust Trigger Reassessment

Transferring property into an irrevocable trust may present estate tax planning benefits and asset protection opportunities as well as Medicaid eligibility advantages. Within this context, one of the initial questions raised is whether such a transfer would result in a reassessment alongside higher property taxes. The answer changes in accordance with state-specific property taxation practices and the nature of the transfer.

                                                                                          When Property Tax Reassessment Might Occur

A reassessment is triggered by property transfer in many states. However, there are specific exemptions that might be applied. Reassessment may be influenced by the factors presented below:

  • Ownership Change: Property tax laws define placing a property in an irrevocable trust as a change in ownership and it could result in a reassessment at the current market value.

  • Beneficiary Designation: If the trust designates a beneficiary other than the grantor or the grantor’s spouse, reassessment is more likely.

  • State-Specific Exemptions: Some states may allow exclusions if the transfer is between close family members like parent-to-child transfers under specific legal provisions.

  • Medicaid Planning and Trusts: If the trust is used for Medicaid planning, property tax rules may vary depending on the structure as well as the purpose of the trust.

                                                                                                        Property Reassessment May Be Prevented

Certain scenarios allow a property to be placed in an irrevocable trust without resulting in a tax reassessment as outlined below:

  • Retained Beneficial Interest: If the grantor remains a beneficiary with specific rights, reassessment may not apply in some jurisdictions.

  • Transfers to a Living Trust First: Some property owners first transfer assets into a revocable trust before converting it into an irrevocable trust in order to avoid immediate reassessment.

  • Parent-to-Child Transfers: Some state laws like California’s Proposition 58 (prior to 2021) provided reassessment exclusions for property transferred between parents and children.

                                                                                                            Tax Implications Beyond Reassessment

Property tax reassessment is definitely an important factor. Yet, other tax implications should also be considered as listed below:

  • Gift Tax Implications of Irrevocable Trusts: The IRS may consider the transfer a taxable gift and it may be subject to annual and lifetime exemptions.

  • Estate Tax Planning Benefits: Property held in an irrevocable trust is generally removed from the grantor’s taxable estate and might reduce estate tax exposure.

  • Capital Gains Tax on Irrevocable Trusts: Beneficiaries might not receive a step-up in basis upon the grantor’s passing and may increase tax burden in terms of capital gains when the property is sold.

  • Income Tax on Irrevocable Trusts: Trust income could be subject to high federal tax rates if not distributed to beneficiaries in an effective manner.

                                                                                                                                         Conclusion

Placing property in an irrevocable trust may be a smart strategy in the context of estate planning. However, property tax reassessment should be acknowledged as a fundamental aspect. Taxation experts can present in order to align with long term goals when transferring property into a trust.

Looking for Professional Online Accounting Services?