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California Dmv, Real Estate, and Property

What is Proposition 19 and how does it affect inherited property in California?

Short answer

Proposition 19 (effective February 2021) significantly limited the parent-to-child property tax exclusion. An inherited home is only exempt from reassessment if it is the heir's primary residence AND the assessed value does not exceed the inherited value by more than $1 million…

What this usually means

Proposition 19 (effective February 2021) significantly limited the parent-to-child property tax exclusion. An inherited home is only exempt from reassessment if it is the heir's primary residence AND the assessed value does not exceed the inherited value by more than $1 million. Investment properties and vacation homes inherited from parents are now generally reassessed at market value. This can mean a significant property tax increase.

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