Proposition 13

In keeping with my theme of aging in Marin, I’ve been thinking of those who are currently purchasing homes in today’s market.  How are they going to keep up with their high property tax base as they get older? Sure, if everything goes as planned then it should be okay.  But, what if it doesn’t go as planned? Aging in place may become difficult. I then thought of my own parents who are lucky that their home is under the Proposition 13 bill.

Today I was reading the Independent Journal and came across an article that talks about Marin’s property tax.  As the first property tax bill is due to hit our mail boxes, I thought I would pass along this article. You can find it here: Marin County posts record property tax bill  

Gedon Law and CPA

About Proposition 13 and Why We Have It

Prior to 1978, California’s property tax was a little less than 3% of the market value for one’s homes and there were no limits to tax increases or assessments. So, some owners had their home reassessed at 50-100%.  This was a huge problem, especially for the elderly.  Many had paid off their mortgages yet faced losing their homes because they couldn’t afford the taxes. This situation was getting out of control, and just when people were close to losing their homes, Howard Jarvis (Howard Arnold Jarvis was an American businessman, lobbyist, and politician. He was an anti-tax activist responsible for passage of California's Proposition 13 in 1978.), gathered more than 1.5 million signatures to qualify a statewide initiative to finally end excessive taxation and protect the security of home ownership.  This was called Proposition 13. On June 6th, 1978, nearly two-thirds of California’s voters passed Proposition 13, reducing property tax rates on homes, businesses, and farms by about 57%.

Many politicians said that the cut to property taxes have hurt California’s ability to maintain their roadways, and infrastructures. However, it has forced local governments to manage their finances better. That is one reason the initiative had such overwhelming popular support.  Most cities and counties have been very successful under proposition 13.  If some failed, the problem was not Prop. 13.  It was reckless spending.

It is important that we make sure this proposition does NOT get repealed. We must make sure our elderly are able to afford to stay in their homes if that is what they have chosen.  If you would like more information or have a comment, please feel free to contact me.

Moving Elderly Parents (When to speak with Mom & Dad)

In today’s blog, I would like to talk a little about our aging population.  Marin County has a high number of baby boomers (which I happen to be the last year of that category). I also, have gone through this very important yet terrifying conversation with my in- laws.  Thankfully, everything turned out for our family.

As a side note before we begin, I also have my SRES certification, which is a Seniors Real Estate Specialist. This is a designation that is awarded only to Realtors who have additional education on how to help seniors and their families with later-in-life- real estate transactions.

Rittenhouse Senior Living

This is probably one of the hardest conversations child/children will ever have to make.  Many seniors would prefer to continue living in their own home or age in place.  Sometimes, circumstances work against those preferences. Continuing maintenance, those stairs they no longer can navigate, financial ability for in- home caregivers, and support services that are not available at home. Whatever the reason may be, having this conversation is challenging.

If you open the lines of communication early rather than waiting until a fall or hospitalization, words like “assisted living” won’t be such a shock.  Most people wait until there is a crisis situation, which can have a huge impact on the elderly parent.

When having this conversation, let the parents know that your concern is for their health & safety.  Ask them if they have given any thought to what happens if they can no longer take care of themselves?  Have they considered checking out a few assisted living facilities? Choosing housing that meets your family’s current needs, and anticipate future needs, can be a challenge. It can require a significant financial investment depending on the level of care desired.

The Cincy Blog

The very nature of downsizing means that the property you will be moving to, will be smaller than the property you currently live in.  Moving from the family home can be overwhelming for both the parents and child, especially if you are facing a lifetime of possessions and must make the choice about what to bring and what which items to let go. Although we have good intentions, sometimes it can be better to hire a third party to help with this process.

Here are a few things to keep in mind when choosing an assisted care facility.

         Is the facility close to family and friends?
         Do they provide daily activities, (being social, is an important part of staying active and healthy)?

        How is their medical staff?
         Does the facility provide transportation (Dr. Appointments, groceries, etc.)?
         Most importantly, is the staff kind, caring, and friendly? Do they like their job?
         Marin offers many solutions for our seniors that may not be as scary as they sound.

Make sure to do the homework before taking your parents.  Visit multiple facilities at different times of the day. Speak with the employee’s, watch how they interact with their residents.  Often times, there is guilt associated with putting your parents into an assisted living facility. However, I know from personal experience that is can be the most loving act a child can do.  Quality of life is immeasurable.

For all who are moving through this process, I send guiding angels.  If you want more information on options in Marin or how to navigate through the process, please feel free to contact me at kfvaladez@gmail.com