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Estate Planning in Los Angeles: What Every Becton Dickinson Employee Should Know About Real Estate and Legacy

Healthcare Provider Update: Healthcare Provider for Becton Dickinson Becton Dickinson and Company (BD) is a global medical technology company that provides a wide range of medical devices, instrument systems, and reagents. While BD does not serve as a healthcare provider itself, it supplies essential products and technologies that healthcare providers utilize. Its offerings include items critical for diagnostics, medication management, and infection prevention, which are crucial for hospitals, outpatient facilities, and laboratories. Potential Healthcare Cost Increases in 2026 for Becton Dickinson In 2026, healthcare costs could rise significantly, impacting Becton Dickinson and its operations. Factors such as the anticipated expiration of enhanced premium subsidies under the Affordable Care Act (ACA) are expected to contribute to steep insurance premium increases, potentially exceeding 75% for many consumers. This scenario may drive more healthcare consumers out of the market, leading to reduced demand for medical devices and products. Coupled with rising medical costs and inflation, Becton Dickinson may face challenges in pricing its products competitively while cushioning the effects of increased healthcare expenditure on its customer base. Click here to learn more

'Rising costs, evolving property tax rules, and liquidity pressures mean that investors should consider Los Angeles real estate as part of their larger retirement and estate strategy, rather than as a standalone asset. I encourage Becton Dickinson employees to regularly reassess how home ownership aligns with long-term cash flow, legacy goals, and overall financial flexibility.' – Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.

'In today’s Los Angeles housing environment, Becton Dickinson employees should evaluate real estate through the lens of liquidity, long-term risk, and generational planning rather than relying solely on past appreciation. Thoughtful coordination between housing decisions and retirement objectives can create greater clarity and flexibility.' – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

How rising costs and shifting market conditions have changed the financial landscape for Los Angeles homeowners.
What today’s inheritance and property tax rules mean for families passing real estate to the next generation.
How liquidity, insurance, and long-term planning may influence real estate decisions for Becton Dickinson employees.

Owning a home in California, particularly in Los Angeles, was once seen as a clear path to wealth. You made a purchase, waited, and appreciation seemed to do most of the heavy lifting. As a result, many Becton Dickinson employees who built careers in Southern California have long considered real estate a central part of their long-term financial planning.

The math has shifted.

From the Westside to the San Gabriel Valley to the South Bay, families across Los Angeles are experiencing a very different housing environment than they did just a few decades ago. While property holdings still typically continue to appreciate, rising costs in other areas may be chipping away at the financial foundations. The good news is that meaningful financial opportunities still exist for Becton Dickinson employees willing to engage in proactive retirement and legacy planning.

Here are some things to consider if you currently own property in Los Angeles or expect to pass it on to the next generation.

Appreciation Still Tells a Story—But Context Matters

A family could have bought a home in Torrance or Pasadena for under $300,000 in the late 1990s or early 2000s. ¹ Today, that same property may be worth between $1.5 million and $2 million. ² As of 2026, the median home price in Los Angeles County was $950,000. ³ On paper, that represents significant accumulated value. However, today’s landscape looks different than in the past:

- A 3% mortgage rate is no longer typical. Freddie Mac reports that 30-year fixed mortgage rates have averaged well above 6% in recent years. ⁴
- Property insurance costs have risen substantially, with several insurers limiting new policies in California.
- Proposition 13 limits property taxes for long-term owners but resets upon sale.
- Los Angeles renovation costs rank among the highest nationwide. ⁵
- Maintaining an older home can cost tens of thousands annually depending on condition and location.

For Becton Dickinson employees, appreciation alone is no longer sufficient reason to hold real estate. Decisions now involve long-term planning, risk assessment, tax considerations, and liquidity analysis.

The Inheritance Formula Has Changed

Many families assume inheriting a Los Angeles property is automatically beneficial. Financially, it can be—but the calculations are more complex today.

Under Proposition 19, children who inherit a primary residence must meet certain requirements to limit property tax reassessment. ⁶ They generally must:

- Occupy the home as their primary residence.
- File for the homeowner’s exemption within one year of the transfer.
- Stay within specific assessed value limits.
If they move out, property taxes will reset to market value. California’s statewide property tax rate averages approximately 1% of assessed value (plus local assessments). ⁷ On a $2 million Los Angeles home, that could mean annual property taxes of $20,000 or more.

For adult children who already own homes elsewhere, retaining inherited property in Los Angeles County can become financially demanding. As a result, properties originally intended to remain in the family are frequently sold.

Property Taxes: The Quiet Divide

Proposition 13 has created two very different homeowner experiences in Los Angeles. A couple who purchased a home in 1995 now worth $1.8 million may pay a fraction of what a new buyer would pay in property taxes. Although California limits annual assessed value increases to 2% under Proposition 13, a buyer purchasing the same home today would pay property taxes based on current market value.

Economists often refer to this dynamic as the “lock-in effect,” where homeowners remain in place due to tax advantages tied to long-held property. From a planning standpoint, this often leads to:

- Reduced housing mobility.
- Wealth concentrated heavily in real estate.
- Reluctance to downsize during retirement.

For many Becton Dickinson retirees, the emotional and financial aspects of homeownership become closely connected.

Risk and Insurance Are Now Major Factors

Earthquake exposure, wildfire risk, and tightening insurance markets have also changed property cost structures in Southern California.

In recent years, several major insurers paused or limited new homeowner policies in California. ⁸ Even where insurance is available, premiums in high-risk areas have increased substantially. ⁸

In light of these factors, owning property in Los Angeles is no longer viewed as a low volatility asset. Like any major investment, it carries ongoing costs and regional risks that must be evaluated carefully.

Liquidity Matters More Than Ever

Many Los Angeles homeowners are “house rich, cash flow tight.” Despite significant home equity, families may still feel financially constrained. Retirement income planning, health care expenses, college costs, and multigenerational support all require accessible capital—something a home does not easily provide.

Unlike a diversified investment portfolio, a home:

- Does not generate consistent income
- Cannot be partially sold
- Requires ongoing maintenance
- May take months to sell

From a planning standpoint, it is important to determine whether the home supports your long-term financial objectives or primarily serves as a legacy and emotional anchor.

Capital Gains: A Limited Advantage

Homeowners may exclude up to $250,000 (single) or $500,000 (married filing jointly) of capital gains when selling a primary residence. ⁹

However, decades of appreciation in Los Angeles can exceed these limits quickly. If a home purchased for $400,000 is sold for $2 million, that creates a $1.6 million gain. After applying the exclusion, a significant taxable amount may remain.

Coordinating sale timing with a broader tax strategy can make a meaningful difference.

Has Homeownership Lost Its Appeal?

Not entirely—but the advantages are no longer automatic.

Los Angeles real estate can still offer:

- Long-term appreciation potential
- Housing cost stability for long-term owners
- Emotional and legacy value
- The ability to build equity over time

What has changed is the level of planning required:

- Estate plan coordination

- Understanding Proposition 19

- Liquidity planning

- Risk evaluation

- Tax review before transferring or gifting property

What was once a simple “buy and hold” decision has evolved into a more detailed financial strategy.

Planning Ahead

If you own property in Los Angeles or intend to pass it to your children, consider:

- Will your children realistically live in the home?

- Have you calculated potential reassessed property taxes?

- Does real estate represent too much of your net worth?

- Would selling during your lifetime provide greater flexibility?

- Is your property title aligned with your trust and estate plan?

For some families, keeping the property remains appropriate. For others, converting equity and diversifying assets may better support retirement income, intergenerational wealth objectives, or charitable planning.

Final Thoughts

California real estate has a long history of appreciation and opportunity. That remains true in Los Angeles—but the financial landscape is more complex than it once was.

Homeownership today involves understanding cash flow, tax exposure, policy changes, insurance risk, and family dynamics. For Becton Dickinson employees approaching retirement or already retired, these factors can influence estate planning outcomes.

The advantages are still there—but they require careful planning.

If you are evaluating how your Los Angeles property fits into your broader retirement and estate plan, it may be time to revisit the numbers.

You can get retirement planning assistance from The Retirement Group. Give us a call at (800) 900-5867 to learn more.

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Articles you may find interesting:

Sources:

1. Patch. ' Home Prices Have Nearly Tripled In LA Since 2000: Report ,' by Kat Schuster. April 4, 2022.

2. Zillow. ' Pasadena, CA Housing Market ,' January 31, 2026.

3. Federal Reserve Bank of St. Louis (FRED). ' Housing Inventory: Median Listing Price in Los Angeles County, CA ,' February 6, 2026.

4. Freddie Mac. “Primary Mortgage Market Survey® (PMMS®) Archives.” Freddie Mac , 2026, https://www.freddiemac.com/pmms/pmms_archives .

5. House Beautiful. ' Experts Say Renovations Are the Most Expensive in These States ,' by Sarah Lyon. Feb. 14, 2025.

6. Fennemore Law. ' California Proposition 19's Impact on Estate Planning and Gifting of Real Property ,' by Judith Tang. Feb. 17, 2025.

7. reAlpha. ' California Property Tax (2026): Rates, Prop 13 & Cost ,' by Daniel Ares. Feb. 2, 2026.

8. Kiplinger. ' California's Home Insurance Crisis: Rising Risks, Soaring Costs and Limited Options ,' by Carla Ayers. Jan. 16, 2025.

9. IRS. ' Topic no. 701, Sale of your home. ' Jan. 22, 2026.

How does the Becton Dickinson and Company defined benefit plan differ from the cash balance plan in terms of eligibility and benefit calculation? Employees at Becton Dickinson and Company should be aware of how their retirement options and benefit calculations are structured, especially considering the historical context and the changes made after

Defined Benefit vs. Cash Balance Plan: The Becton Dickinson and Company defined benefit plan and cash balance plan differ significantly in terms of eligibility and benefit calculations. The defined benefit plan, which was the original format, calculates benefits based on the employee's final average pay, age, and years of service. On the other hand, the cash balance plan, introduced in 2007, provides a hypothetical account balance that grows with defined pay and interest credits. For eligibility, new hires after January 1, 2018, cannot join either plan, reflecting a closure to new entrants. Those rehired or transferred within the company after this date also cannot accrue new benefits under the cash balance plan.

This question encompasses the differences in participation rules, the implications of being hired before or after January 1, 2018, and how various employment classifications affect benefits.

Pension Benefits Calculation: Under the BD Retirement Plan, pension benefits are calculated based on 'Total Compensation,' which includes various forms of income like base salary, bonuses, and other regular compensations. The benefit is determined by 'Credited Service' and 'Vesting Service,' impacting the final benefit amount. Vesting in the plan occurs after five years of service, ensuring that employees are entitled to benefits regardless of subsequent employment duration.

In what ways are pension benefits and service calculated under the Becton Dickinson and Company BD Retirement Plan? The complexities involved in determining the pension benefit calculation are crucial for employees to understand as they plan for retirement. A discussion on how Total Compensation, Credited Service, and Vesting Service impact the final benefit amount will provide clarity to employees regarding their financial planning as they approach retirement.

Maximum Benefit Limits: Employees should be aware of IRS-imposed limits on contributions and benefits under retirement plans. For 2018, the compensation limit recognized for pension calculations was $275,000, adjusted annually for inflation. This affects the projected retirement benefits and requires employees to stay informed about annual adjustments to plan accordingly.

What specific maximum benefit limits should employees at Becton Dickinson and Company be aware of regarding their retirement plans and how do these limits adapt annually? Understanding the implications of IRS limits for defined benefit plans and cash balance plans is vital for employees at Becton Dickinson and Company. This question would delve into how annual adjustments might affect their projected retirement benefits and the importance of staying informed about these limits.

Addressing Discrepancies or Denial of Benefits: If discrepancies or wrongful denials occur concerning retirement benefits, Becton Dickinson and Company employees should contact the Plan Administrator. The process includes filing claims and understanding the rights to appeal under the Employee Retirement Income Security Act (ERISA). This structured approach helps employees rectify issues with their retirement benefits effectively.

How can Becton Dickinson and Company employees address discrepancies in their benefit calculations or if they believe they have been wrongfully denied benefits? The processes for appealing decisions made regarding retirement benefits can greatly impact an employee's financial future. This question would outline the steps employees can take, including contacting the Plan Administrator and the importance of understanding their rights under the Employee Retirement Income Security Act (ERISA).

Role of Committees in Managing the Retirement Plan: The Plan Administrative Committee and the Investment Committee play critical roles in overseeing the BD Retirement Plan. The former handles the plan's administration, ensuring compliance and managing benefit claims, while the latter focuses on the investment of plan assets. Employees can seek clarification or get involved by attending committee meetings or contacting them directly for specific inquiries.

What roles do the Plan Administrative Committee and the Investment Committee play in managing the BD Retirement Plan of Becton Dickinson and Company, and how can employees get involved or seek clarification on their plans? Employees interested in understanding the governance of their retirement plan will benefit from knowing who oversees the administration and investment of their benefits and how they can participate in discussions or seek advice.

Impact of Early Retirement: Early retirement affects the calculation of pension benefits, which are reduced based on the number of years retirement is taken before the normal retirement age. The plan allows for early retirement from age 55 with at least 10 years of service, with benefits reduced to compensate for the longer payout period.

How does the early retirement benefit impact employees at Becton Dickinson and Company, particularly in terms of eligibility and the calculation of reduced benefits? By exploring the conditions under which early retirement is permitted, along with calculations related to the reduction in benefits for taking early retirement, employees can make more informed decisions based on their personal circumstances.

Ensuring Accuracy of Retirement Benefits: To ensure accuracy in the calculation of retirement benefits, especially after changes in personal circumstances such as marital status or address, employees are encouraged to promptly update their information with HR. Regular reviews of their retirement plan statements and maintaining communication with the plan administrator are advisable practices.

What steps should employees of Becton Dickinson and Company take to ensure their retirement benefits remain accurate and up-to-date, especially after a change in personal circumstances? This question addresses the importance of regularly updating personal information and understanding the repercussions of life changes on retirement benefits, ensuring employees are proactive in managing their future.

Alternatives for Non-Eligible Employees: Employees not eligible for the BD Retirement Plan, possibly due to the timing of their hire or their role, should explore other retirement savings options like IRAs or the BD 401(k) Plan. These alternatives provide avenues for retirement savings, even for those not covered under the traditional pension plans.

What alternatives exist for Becton Dickinson and Company employees who are not eligible for the BD Retirement Plan, and how can they plan for retirement adequately? This discussion can help inform employees who may fall outside the eligibility criteria about other retirement savings options, such as Individual Retirement Accounts (IRAs) or employer-sponsored 401(k) plans.

Determining Survivors' Pensions: The survivor's pension is determined by the pre-retirement surviving spouse benefit, which generally provides a monthly benefit of 50% of the employee's pension, payable to the spouse for life after the employee's death. This emphasizes the importance of employees designating beneficiaries and understanding the impact of these decisions on their family's financial security.

In the context of the Becton Dickinson and Company BD Retirement Plan, how are survivors' pensions determined, and what options are available for employees regarding beneficiaries? Employees often overlook the significance of beneficiary designations. This question would clarify the process and options available for ensuring that survivors receive entitled benefits and the financial implications of different choices made regarding pension benefits for spouses and dependent children.

Contacting the Plan Administrator: Employees seeking more information about their retirement benefits should contact the Plan Administrator. Preparedness for such inquiries includes having detailed personal and employment information, understanding their current benefits status, and having specific questions or concerns about their plan benefits.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Becton Dickinson announced a restructuring plan that includes significant layoffs and a shift in their global operations strategy. The company aims to streamline its operations and reduce costs amid a challenging economic environment.

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For more information you can reach the plan administrator for Becton Dickinson at 1 Becton Dr Franklin Lakes, NJ 7417; or by calling them at +1 201-847-6800.