Proposition 19: The (Near) End of the Parent-Child Exclusion, and More
Proposition 19 was recently passed in California and will fundamentally change the way that property taxes are calculated when a property owner moves or when property is inherited. It virtually eliminates the parent-child exclusion, which generally allows a child to keep the low property tax base when a parent to transfers property to their children. The new law as it relates to parent-child transfers will go into effect on February 16, 2021, so it is important that families understand how this law will impact them now and implement any changes well in advance of that date.
We are urging clients and advisors to consider how this law will impact them, but not to immediately transfer property to children without understanding the consequences. There are many considerations, and outright transfers to children will only be advisable after careful analysis. However, there are many planning opportunities that will only be available between now and February 15, 2021, and the plan needs to be crafted and implemented well in advance of that date.
Proposition 19 Overview Video (18 minutes)
2/3/21 Update: We are no longer taking appointments for Proposition 19-related changes that need to be made by 2/15/21. Please contact our office if you would like to request educational materials on this topic or if we can be of help to you any other way.
Heather Johnston
Founder, Managing Attorney
If you’re on a slow Internet connection, you can download this video in 1080p format - just right click on the link and choose the applicable option to save the file to your device.
This video is for educational purposes only and should not be construed as legal advice. Watching the video or contacting the firm does not create an attorney-client relationship.