- Prop 19 and Property Taxes on Inherited Property: If your child’s name was not listed on your deed by February 2021, now if they inherit your house, they will have to live in the property themselves as their primary residence within one year of your passing. Otherwise, your adult children will be hit with a property tax reassessment.
- Prop 19 is a law that was drafted and designed by the California Association of Realtors to force people to sell rental properties they own. Prop 19 gutted Prop 13 property tax protections in California. It does this by imposing significant property taxes on inherited rental properties.
- If your child doesn’t move into your old house as their personal residence within one year of your death, they will be hit with a property tax as if they purchased your house at it’s current market value. In other words, if you own a rental property, your children do not have the option of continuing to use it as a rental.
- You can assign a beneficiary to inherit your house by using a Revocable Living Trust or a Transfer on Death Deed. Either of these methods will transfer real property to your beneficiaries without going to Probate Court to transfer ownership.
- If your beneficiaries simply continue using inherited property as a rental instead of moving in themselves, within three years’ they will receive a property tax reassessment dating back to the date of the owner’s death.
We can meet and strategize the best possible options for you to get through the process quickly and strategically. Having a plan in place will take the stress off your shoulders, and you can relax knowing that you have an experienced legal advocate representing your best interests.
