Pop Up Tax

I happened on a copy the April 2010 issue of Mrs.
McGregor's Fiftyplus news publication. It is a bit
pricey to subscribe. In a recent conversation it
came to my attention that people at my stage of
life have concerns about leaving property to their
descendants because of the tremendous increase in
property taxes the next generation will experience.
In my case there is no one who wants to keep any
property I own here in Iron County so any tax problem
on property I bequeath will be quite temporary.

There's an article in Mrs. McGregor's addressing the
issues. It turns out, according to the article, that
by adding loved ones to the title as joint tenants
with full rights of survivorship, you can avoid the
actual transfer of the property because your name is
still on the title. An appeals court decision in the
case of Klooster v. City of Charlevoix ruled that
death does not trigger the tax for joint property.

I am not a lawyer and this second hand report of a
technique is not legal advice. Please consult a
competent lawyer for legal advice in matters such
as are discussed here. That being said, there is
always a danger that the legislature will act to
close this "loophole" so if you have property to
leave to your favorites, don't wait. The cited case
has a date of December 15, 2009. The Court decided
that since the inheritance is not an intentional
conveyance, the pop up tax does not apply to jointly
held property with survivorship.

The article goes on to discuss other solutions and
restrictions so if you want the full discussion,
please acquire a copy of the publication.

Bill Vajk