I explain in this video how Prop 19 makes drastic changes Parent to Child transfers.
*Note that this video was made prior to the count being official – the count now is official and prop 19 has passed.
Under Prop 19, the parent to child reassessment exclusion no longer applies unless it is a transfer of a primary residence from a parent to a child who uses it in turn as their primary residence. Whereas before there was no limit to the value of the transfer of a primary residence, prop 19 only excludes the first $1 million of assessed value.
Prop 19 also changes the rules so that any transfer of a non-primary residence, or rental property, from parent to child is now reassessed.
There are some benefits under prop 19 for individuals over 55 to transfer their assessed value to a new home, but there is no doubt about it that prop 19 is a huge change when it comes to parent to child or grandparent to grandchild transfers.
I invite you to check out my YouTube channel that has numerous videos on Estate Planning. If there is a topic that you want to learn more about, please let me know and I will add another video!
Here is a link to the Wood Law YouTube channel