California Proposition 19 Parent-Child Transfers
Under California Proposition 19 (effective Feb. 16, 2021), parent(s) can transfer their property along with its Proposition 13 base year value to their children if the following conditions are met:
- The property must be the principal residence of the parent(s)
- The property must become the principal residence of the child within one year, and all applicants must have a valid Homeowners’ Exemption (HOX) filed within 1 year of the transfer in order to qualify for this exclusion
- Only the principal residence of a parent(s) qualifies for a base year value transfer
Additional information on the Proposition 19 Parent to Child Transfer can be found here.
We have created the following California Proposition 19 Parent to Child Transfer Benefit Estimator so that you can get an estimate on how much you may be able to save by taking advantage of Prop 19 and avoiding reassessment on an inherited home. To calculate your Proposition 19 benefit, simply enter to current property value of the inherited home, the current assessed value of the inherited home and what the tax rate paid on the property is into the calculator. Your Prop 19 estimated benefits will be automatically calculated for you.
EstatePlanningGuide.org California Proposition 19 Benefit Calculator
The calculator is for estimation purposes only. To take advantage of your Proposition 19 exclusion from property tax reassessment, or to verify what you Proposition 19 Benefit might be, we suggest you contact a local attorney or property tax specialist in your area that specializes in property tax matters. If you are inheriting a home from a trust or estate, you may also require a trust loan to equalize the distribution in order to qualify for a full exclusion from property tax reassessment. You can learn more about loans to irrevocable trusts and avoiding property tax reassessment from this article on trust loans.
The following is a chart comparing the existing Proposition 19 Parent-Child Transfer rules to the previous California Proposition 58 Parent-Child Transfer rules. The chart was found on the California Board of Equalization website under the Proposition 19 Guidelines section.