How Does Proposition 19 Affect Inherited Property in California?
California's Proposition 19, effective February 2021, significantly changed the property tax reassessment rules for inherited property. Before Prop 19, children who inherited a parent's home could keep the parent's low property tax base regardless of whether they moved in. Under Prop 19, the parent-child exclusion is now only available if the inheriting child uses the property as their primary residence within one year of inheritance. Investment properties, vacation homes, and properties not occupied by the inheriting child as a primary residence are reassessed at current market value upon transfer.
Going Deeper
The practical effect of Prop 19 is that keeping an inherited California property as a rental or second home is now significantly more expensive in property taxes than before. For a property with a $100,000 assessed value that is now worth $1,500,000, the property tax bill could increase by $10,000-$15,000 per year under reassessment. This change has made selling inherited property — rather than keeping it — more financially attractive in many cases where the inheriting child does not intend to live there.
Wolf Allies connects trustees, executors, and families with agents who have deep experience in California trust, probate, and estate property sales — at no cost to you.
Find My Specialist →