Transferring California Property Ownership Sooner Rather than Later Might Protect Your Children
Do you own a winery, farm, or other lucrative property in California? Were you planning to transfer the property to your children, knowing there would not need to be a tax reassessment? If you counted on the parent-child tax exemption for property transfers in California, you might want to speed up your plans. This is because voters passed Proposition 19, and the changes in the law will go into effect on February 15, 2021. Currently, parents can transfer ownership of a principal residence to their children without the need for a reassessment of property taxes to the property’s fair current market value. If the middle generation is deceased, grandparents can transfer property directly to their grandchildren. This exemption was important for people wanting to transfer valuable legacy properties, which might include…