Laws, Regulations & Annotations
Property Taxes Law Guide – Revision 2015
Property Tax Annotations
493.0000 GRANDPARENT-GRANDCHILD TRANSFER
493.0075 Life Estate. Grandparents propose to create a revocable trust that is funded with real property. Upon the death of the last settlor, the trust will become irrevocable and the settlors' children will become the income beneficiaries for their lifetime. Upon the death of a child, that child's share will go to that child's issue, if any, and so on.
Where a life estate terminates as a result of the death of a life tenant, the transfer to the remainderperson is from the creator of the remainder interest, not from the life tenant. Thus, if the beneficiaries of the life estate (the life tenants) are the children of the transferor and the remainderpersons are the grandchildren of the transferor, then both the parent-child and the grandparent-grandchild exclusions may apply to the change in ownership that occurs upon the creation and termination of each life estate. C 2/25/2009.