In the recent November election, California voters passed Proposition 19 by a slim margin. This now paves the way for real property tax reassessments of transfers of real property between a parent and child that are currently excluded from reassessment under the parent/child exclusion. Subject to the certification of the election results on December 11, 2020, the change relating to the current parent/child exclusion law will be effective on February 16, 2021, and will apply to all transfers of California real property on or after the effective date, regardless of where the parent or child resides. Therefore, time is limited for those who wish to take advantage of the benefits under the current parent/child exclusion before the law changes.
For further discussion of planning issues and options to consider, please see the following two articles we previously authored:
Proposition 19 threatens to increase property taxes on parent-child transfers of California real estate
California's Proposition 19: 9 considerations before the November 3 vote
The experienced estate planning and real estate counsel of Withers would be pleased to advise on the planning opportunities. Please contact your Withers attorney with any questions or to discuss planning options.
We invite you to view additional election related planning analysis, including post-election webinars and articles at our US Election: Checklist 2020 webpage.