California Prop 19 Summary

Parent-to-Child Transfer is No Longer Automatically Exempt

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Before Prop 19, parents could transfer a primary residence(and even up to $1million in assessed value of other property) to children without triggering a reassessment of property taxes. Under Prop 19, that tax break is now limited and conditional.

Exemption Only Applies If

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  • The property was the parent’s primary residence and

  • The child makes it their primary residence within one year of the transfer or inheritance.

If these conditions are met:

  • The child may keep the parent’s low assessed value, up to $1 million over the assessed value.

  • Any value above the $1 million cap is reassessed and added to the new property base.

If the Child Does Not Move In

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The property will be fully reassessed to current market value, increasing property taxes significantly.

Example - Let’s say:

  • The home is now worth $2.5 million.

  • The assessed value (Prop 13 bias) is $300,000.

  • The child inherits the home but does not move in.

  • The property is reassessed to $2.5 million.

  • Property taxes jump from ~$3,000/year to ~$25,000+/year.

Filing Requirements

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  • You must file a “Claim for Reassessment Exclusion for Transfer Between Parent and Child” with your county assessor’s office.

  • You must also file a Homeowners’ Exemption to confirm the inherited home is now your primary residence (if you’re trying to claim the exclusion).

  • This typically needs to happen within 1 year of the transfer date.

Important Considerations

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  • Vacation homes and rental properties no longer qualify for exclusion.

  • Trusts, LLCs, and estate plans may affect how these rules apply—consulting an estate attorney is highly recommended.

  • Prop 19 also affects grandparent-to-grandchild transfers (only allowed if the parent is deceased).