With the passage of Proposition 19, California law now requires that property be reassessed at death. That means when a homeowner passes away, their property taxes—often low due to Prop 13 protections—can increase significantly, often to 1.25% of the home’s current market value.
For most families, this can result in a substantial tax burden.
There is one exception:
If the property was the primary residence of the deceased and a child is living in the home, the property tax reassessment may be avoided. But this exception is not automatic.
To qualify:
-You must file the correct forms with the County Assessor promptly.
-The transfer must go directly from parent to child—not from sibling to sibling.
-Any mistake in how the transfer is handled can cause reassessment, even if the child remains in the home.
These rules are complex, and missing a step can cost your family thousands in higher property taxes. If you’ve recently lost a parent and want to protect your inheritance, give me a call. I can walk you through the process and help you avoid costly mistakes.
