Parent-Child Transfer: Proposition 19

This Proposition affects real property that is transferred from parent to child. In past years, a child inheriting real property would have the benefit of having the deceased parent’s property tax basis for the parent’s primary residence and additional real property limited to $1 million of additional assessed value. On February 16, 2021, this transfer benefit changes to a limit to the value of the transfer of the parent’s primary residence to $1 million and no additional real property is given this property tax transfer. There are some planning techniques for families with concerns with the property tax reassessment to address this Proposition 19.