Q: my brother and i are the succesor trustees and sole beneficiaries of my parent's revocable living trust

A: A key fact that is missing from your narrative is whether you and your brother both intend to occupy the house. You should re-post your question and add that important information.

A: The lawyer is right if neither your brother or you will move into the home and make it your primary residence. This resulted from a ballot initiative a few years ago that was called, in essence, the Home Protection for Severely Disabled, Elderly and Victims of Natural Disasters, otherwise known as Proposition 19. People thought they were ONLY voting to protect homes for people in need, but they also voted to cut a massive hole in Proposition 13. Quick history: before the 1970’s, CA’s government doubled property taxes every time they wanted more money. People were forced to sell their homes because they couldn’t afford their taxes. So, homeowners rebelled and passed Prop 13, which said the government can only raise property taxes 2% a year. Up until a few years ago, children could inherit ANY real estate from their parents and step right into their shoes for property tax purposes, literally paying the same property tax as their parents then having it increase 2% a year. But Proposition 19 (the Home Protection Act) changed that. Now all inherited property is AUTOMATICALLY REASSESSED to current value as of the date of the last parent’s death — with only one very narrow exception. The Jarvis Foundation, which was behind Prop. 13, has twice tried to overturn the harm done by the Home Protection Act but, because so few people know what they voted for, they don’t realize they too will be going through what you’re facing now. If more people understood what they voted for, we could get a proposition put on the ballot for us to overturn Prop. 19. But the Jarvis Foundation literally needs MILLIONS of signatures to do that. Jarvis tried twice (the last two elections), but failed to get enough signatures. People don’t know this is a problem. That’s one of the many reasons I hate politics: voters have to sort through the noise to determine what they’re actually voting on. And the impact can last for decades…. Sorry about that.

A: It sounds like you’re dealing with a complex situation regarding the property’s title and tax status. When a property is transferred within a revocable living trust, it often doesn’t trigger a reassessment under California’s Proposition 58, especially if it remains within the family. Since you and your brother are now the successor trustees, this internal transfer typically maintains the current assessed value.

Renting out the property instead of using it as a primary residence generally doesn’t cause a reassessment either. The key factor is that the ownership hasn’t changed in a way that the county would consider a new sale or transfer outside the trust. The real estate agent, loan officer, and title company likely have a clear understanding of these rules, which is why they believe reassessment shouldn’t occur.

However, to ensure everything is handled correctly, it’s a good idea to contact your local county assessor’s office directly. They can provide specific information about your property’s status and any potential changes to your tax assessments. This will give you peace of mind and confirm which advice is accurate for your situation.