What does the passage of California Proposition 19 mean for you?
On November 3, 2020, Proposition 19 appeared on the ballot for the general elections and passed. The passage of this proposition creates an amendment to our California constitution.
Children and grandchildren will no longer be able to receive their parent or grandparent’s property tax basis on inherited property if they do not intend to maintain the property as their primary residence. Thus, when someone inherits a home but does not live there, the inherited property will be reassessed at market value. Even if they do use the property as their primary residence, if the fair market value is over $1,000,000 more than the assessed value, the difference in value will be reassessed. This aspect of Prop 19 takes effect on February 16, 2021. If you want more information regarding this change in the law, please watch this information video:
If you are a homeowner, and you intend to pass your real estate assets along to your heirs, there are many careful considerations. If, after watching the video, you still have questions as to how this might affect you or your estate plan, please contact our office and other members of your planning team, such as your CPA, to discuss.