Proposition 19 has passed. It will become effective either in February or April, 2021. The bottom line is that it prevents a child from claiming an exemption from real property tax reassessment upon the death of the parent. (“Parent” and “child” in this blog also includes grandparent to grandchild, IF BOTH PARENTS of the child are deceased.)
To claim the exemption under Proposition 19, the child must use the parent’s home as the child’s primary residence. The details of the new law are not yet clear, and it could be several years before enough court cases interpret and clarify the provisions of the new law.
For now, it appears, but it is not yet completely clear, that the child must move into the parent’s home within one year after the parent’s death, if the child is not already living in the parent’s home of course.
The safest way to ensure the exemption is obtained, is for the parent to deed the house to the child presently, that is, before February 1, 2021. This is a major decision which may be, or may not be, best for the carrying out of the parent’s wishes and desires as should hopefully be set forth in that parent’s Living Trust or at the very least, in the Last Will.
This decision should not be made without a formal consultation with the parent’s attorney, because many factors exist which may substantially affect the final decisions.