Proposition 19 was passed on the November 2020 ballot and was implemented in February of 2021. Since it went into effect many clients have had questions about whether or not it is possible to circumnavigate these new laws. The short answer is no, there was a brief window where planning could be done however that time has passed and an appeal seems unlikely at this point.

Secondly, many clients are still looking for clarity on what these new laws mean. Essentially Proposition 19 got rid of the parent-child exemption to property taxes. If you gift real property to your child either as a gift or at your death the property will be re-assessed. There is one exception to this, if your child lives in your personal residence they may be eligible to continue paying the property taxes that you have been paying due to Proposition 13. If your property at the time of your death is appraised to be over $1 million, plus the current assessed value then the property taxes will be adjusted for that increase in value. If the appraisal is less than $1 million, plus the current assessed value then your child may be able to continue paying your property tax rate under Proposition 13.

In a way, Proposition 19 has simplified things for most Californians because it essentially eliminated the exemption except for a very select group of people.

If you are interested in reading about Proposition 19 in full you can view the new laws here.


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