Laws, Regulations & Annotations
Property Taxes Law Guide – Revision 2017
Property Tax Annotations
625.0000 PARENT-CHILD TRANSFER
625.0124 Limited Liability Company. Trust B, an irrevocable trust, owns real property. The transfer of the real property by the beneficiaries of Trust B to a limited liability company (LLC) whose sole member will be the same trust, Trust B, is excluded from change in ownership under Revenue and Taxation Code section 62(a)(2). As a result, the trust beneficiaries become the "original co-owners" of the LLC pursuant to section 64(d). Thereafter, all transfers of LLC interests must be counted and cumulated. When more than 50 percent original co-owner shares are transferred, the property will undergo a change in ownership. Because transfers between parents and children are not excepted from cumulating to determine a change in ownership under section 64(d) and the parent-child exclusion does not apply to transfers of legal entity interests, a transfer of more than 50 percent of original co-owner shares in the LLC from the beneficiaries to their children will result in a change in ownership. C 11/7/2013.