Prop 13 and Prop 58 — Transfers from Parent to Child Property Tax Issues

One of the biggest issues that California residents face is how to preserve the Proposition 13 property tax basis on the home and allow that same low tax property tax basis to transfer to their children. This is something that is allowed by law under Proposition 58 (read here for more information) and can also be addressed in your trust and other planning documents.

If you desire your children to each receive a property, it may be wise to draft this into the trust to preserve each of their right to claim the Proposition 58 exemption for their future transfers of property. If you only have one property and you know that one child over another would like to receive this property when you pass, this is also something that needs to be drafted into the trust to ensure that your child can take advantage of this law.

For more information, please contact me or talk to your own attorney if you already have one.