Beginning February 16, 2021, no longer will parents and grandparents be able to transfer their property to their children or grandchildren without triggering a massive increase in property tax liability. These “intergenerational transfer” protections — placed in the California Constitution in 1986 and 1996 with overwhelming support from voters — have been sharply cut back.
Under the 1986 measure, a parent could transfer a primary residence and up to $1,000,000 of assessed value of other property to their children, and such properties would see no change in their tax bill when transferred. They would retain the Prop. 13-protected base-year value for property tax purposes. But under Prop. 19, that only remains true if both the parent and the child use the property as their primary residence.
Who Benefits From Prop 19
For residents age 55 and older, severely disabled, or a victim of a wildfire or natural disaster, there is much to like about Prop. 19. Effective April 1, 2021, those eligible homeowners can sell their homes and take their property tax base with them to any other property they buy for the same value or less in the state of California.
If you have any questions about how Prop 19 may impact you, email [email protected] or call/text (858) 218-6733.