A California homeowner dies and leaves her home to her adult son in her will. The son moves into the home and uses it as his primary residence. Under Proposition 19 (effective February 2021), what happens to the property's assessed value for property tax purposes?
Correct Answer
C) The assessed value is partially excluded from reassessment — the parent's base value is preserved up to $1 million above the current assessed value, provided the child uses it as a primary residence
Under Proposition 19 (which replaced the broader exclusions of Propositions 58/193), a parent-to-child transfer of a primary residence is eligible for a partial exclusion from reassessment. The child must use the property as their own primary residence, and the exclusion applies only to the first $1 million of the difference between the current fair market value and the parent's assessed value. Any value above $1 million over the parent's base is added to the parent's base for the new assessed value.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A quitclaim deed transfers whatever interest the grantor may have in a property without making any warranties or guarantees about the quality of title. It offers the least protection to the grantee.
Recording is the act of placing a document in the public records at the county recorder's office to give constructive notice to the world of an interest in real property. Recording protects the holder's interest against subsequent claims.
A special warranty deed guarantees that the grantor has not caused any title defects during their period of ownership, but does not warrant against defects that existed before the grantor acquired the property.
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