Proposition 19 planning window is closing: favorable property tax exclusion for parent/child transfer of California real property expires February 2021

1 December 2020 | Applicable law: US

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.

This document (and any information accessed through links in this document) is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from any action as a result of the contents of this document.


Related experience

As a full-service law firm, we are able to provide advice and information about a wide range of other issues. Here are some related areas.

Join the club

We have lots more news and information that you'll find informative and useful. Let us know what you're interested in and we'll keep you up to date on the issues that matter to you.