Q: I live in my dad's CA rental, when he passes this property to me, will it be reassessed as it is not his primary home?
This is regarding property tax reassessment due to the newly passed Prop 19 in California. He lives in a different residence that he plans to leave to my brother. I rent his other house now and he wants to give it to me now (if the tax implications are more favorable for him now or myself later) or leave it to me when he passes. I do plan on continuing to live in the home. He wants to know what the best options to plan his trust or transfer property while he is still alive. This is in San Mateo County.
A: Unfortunately, yes. To claim a parent to child reassessment exemption under Prop 19, both the parent and child must occupy the property as their principal residence.
A: The only way your property taxes will be the same as your father's is if BOTH of the following are true: (1) the now-rental home becomes your father's primary residence and is his primary residence at his death -- meaning he is not living in an Alzheimer's facility or anywhere else when he passes away; AND (2) you move into the home and make it your primary residence within one year of his death. If you have a sibling and that person inherits half of the home but doesn't move in and also make the home his/her/their primary residence, then half of the home will get reassessed. I hope that helps!
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