Proposition 19 amends the current legislation adopted in Propositions 13 and 58. It allows qualifying owners (over 55 years of age, physically disabled or natural disaster victims) to move into a house of lesser value up to three times in the State and to carry their lower property tax assessments. This is great news for homeowners; however, you should be aware; Proposition 19 also amends the law on inheriting property. Under proposition 19, all real estate will be reassessed at death, with the exception of a primary residence worth less than $1 million that a child actually moves into. When you have the right estate lawyer they can help you understand the differences and what you should be planning for.
Before Proposition 19 goes into effect on February 16, 2021, there are ways that a property owner can leave their primary residence and up to $1 million in assessed value of other real estate to their children and the assessed value would transfer with the property. Contact Celaya Law to discuss the various ways to get around Proposition 19 through irrevocable trust planning. We can walk you through the best way to pass on your property tax basis to your children without having to gift the property to your children while you are living.
Your family and your heirs may stand to lose millions on property taxes if the correct planning is not done prior to February 16, 2021. Are you willing to take the risk? Contact our Estate lawyers at Celaya Law today to be sure you are set for the future.