The Good, The Bad and The Unknown Inherited Family Property In California How Much Will Proposition 19 Cost Your Children?
By Lynn K. Ching In the State of California, real property is reassessed at market value if it is sold or transferred and property taxes can sometimes increase dramatically as a result. However, prior to November 2020, children could inherit their parents’ primary residence and a second home (or rental property) without triggering a reassessment of the property. This was a boon to families. Parents were able to leave their primary residence (no value limit) and $1 million in any real property to their children, without a property reassessment. The children were about to take over the inherited property, without a big increase in property taxes. No longer. All of that changed when Proposition 19 was narrowly passed by California voters in November 2020. Now, children who inherit their parents’…