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Many cities and counties charge significant transfer taxes when someone sells
property to another person. They often reassess the property
taxes and the taxes may be increased considerably. In California
, it is possible that the property taxes could increase by
several times. In a land trust, it is possible to privately
transfer the beneficial interest in the trust (the actual ownership)
without so reporting to any governmental agency and triggering
a reassessment. This is because a person's interest as a beneficiary
of a land trust is considered personal property under the law.
This can be extremely beneficial when buying out a partner
or spouses interest in a property, or if you wish to deed the
property as a gift to children or grandchildren.
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