Time is Ripe to Become Better Acquainted With the Parent to Child Property Tax Transfer

California Parent to Child Property Tax Transfer

How to Obtain the California Parent to Child Property Tax Transfer


Avoiding Property Tax Reassessment & Property Tax Hikes


It is our consensus that normal middle class class residential owners, upper middle class home owners and working families, none of whom are generating a huge income at the moment, should most likely not be supplying the California state government with extra property tax revenue right now. 

This is especially true during a financial crisis such as the Covid predicament we find ourselves in during 2021… where revenue is tight all over the country, especially in California, with only a few exceptions here and there – where in general unemployment, as well as under-employment, is extremely high.

Regular middle class and upper middle class homeowners need to be saving money, and spending less, not spending more. Certainly not spending more on housing or standard goods and services, or on income tax or property taxes. We’re not talking about luxury goods or high-end services. That is specific to folks with disposable income, and is an entirely different matter altogether. 

As a matter of fact, property taxes are the one big-ticket item just mentioned that is easily lowered, or paused, or even deferred.   And if this never occurs, then property owners are going to have to be more cognizant of related details and new tax laws, as well as  new ways to avoid property tax reassessment – and tax specialists or real estate experts that are available in California to help with these matters.

Middle Class Property Tax Savings

When times are hard, as they are now, the state should help residents with key information on property tax breaks, helping property owners take full advantage of established property tax breaks, like the new Proposition 19 parent-to-child transfer and parent-to-child exclusion from reassessment of property taxes.

And this means not spending more on taxes when times are hard. Certainly, property owners should all be better informed about inheriting property taxes, and Prop 19 parent-to-child exclusion; about property tax breaks, and being able to transfer parents property taxes, with the right to keep parents property taxes on every property tax transfer.

Owning a Home is Part of the American Dream

Purchasing or inheriting a home is part of the classic American dream, and leaving part of that dream to heirs or beneficiaries is something most of us would be proud of.  However, fluid, ever-changing and complicated  property tax laws have to be kept up with, either by ourselves, or through specialists that make a living helping property owners with issues like property taxes.  

Getting expert property tax advice and estate planning advice can help save that dream, and help sustain good family financial practices for generations to come, where your home and other big ticket investments are concerned. 

Genuine Property Tax Relief

The property tax breaks middle class and upper middle class Californians are holding on to are the only safety-net solutions middle class residents have in this state, so the Legislature should be focusing on preserving and strengthening those tax breaks, and on educating and informing Californians about establishing a low tax base for trust beneficiaries; about Prop 19 parent-to-child exclusion and Proposition 19 – parent to child property tax transfer on an inherited home; plus Proposition 13 property tax transfers, as well as the Proposition 19 impact on CA homeowners, and avoiding property reassessment wherever possible – not on obsessively driving more tax revenue, under cloaked measures called “property tax relief” that are merely tax deferments.

Even when it means a little less property tax revenue going into their coffers, it shouldn’t matter to the state government.  In the long run, helping to preserve working families’ financial health and helping them to pay less property taxes, thereby building up more savings, will drive greater property tax revenue to the state, as more people will own homes and pay taxes!  This is what the Legislature would see if they saw long term rather than short term. 

All middle class Californians should be able to depend on secure, authentic property tax relief – like wealthy folks and corporations have in every state in America. Why should only the wealthy enjoy genuine tax cuts and real property tax breaks?

Inheriting a Home in California & Trust Loan Property Tax Savings in 2021

Trust Loan Property Tax Savings

Trust Loan Property Tax Savings

2021 Property Tax Relief & Using an Irrevocable Trust Loan for Homeowners and Beneficiaries Inheriting Property in California

As many Californians that are seeking lower property taxes know by now, current property tax relief measures open up new opportunities for you to take advantage of, if a parent is leaving property to you and your siblings – and you’re looking to keep a low property tax base. 

You can now look forward to new property tax relief opportunities, some that are difficult to understand – that allow you to move into inherited property quickly, within 12-months as a principal residence; in order to take full advantage of the Proposition 19 parent-to-child exclusion (from current property tax rates) to avoid property tax reassessment.

What you may not know a great deal about, however, or what may be difficult to understand, are certain highly effective property tax breaks that are now available to you, if you’re a beneficiary inheriting property from a parent – using an irrevocable trust loan, in conjunction with a Proposition 19 parent-child transfer, with the help of a trust lender.  This is frequently taken advantage of by beneficiaries, perhaps like yourself, who intend to keep a home inherited from parents at the original low property tax base – also making it possible to buyout inherited property shares from co-beneficiaries, using an irrevocable trust loan.

Avoiding property reassessment is a property tax relief benefit available to all Californians, as long as all new requirements are followed. So beneficiaries, new homeowners, can  transfer parents property taxes when inheriting property and inheriting property taxes; with the right to keep parents property taxes for as long as they want, as long as they reside in their inherited residence.                        

Hands On Experience, Establishing a Low Property Tax Base

If it were your siblings selling their property shares – you’d be providing them with a good deal more money than an outside buyer would offer, for the same property; plus locking in a low property tax base for yourself – from a trust lender like Commercial Loan Corp.  And, speaking of which, certain benefits are aptly summarized by a client, who said:

“…just closed my first loan (refinance) with Commercial Loan Corp with a very low 30 year fixed rate (honestly a lot less than we ever anticipated)… This firm was very knowledgeable about [using an irrevocable trust loan] process and trust legal issues involved.  We have been trying to get a refinance for this property for over 5 years! So happy that we found a trust lender like this!(1)  

New 2021 Property Tax Relief Advantages in California

Many California residents are not aware of certain new property tax breaks that provide tax relief for homeowners over 55.  Moreover, residents that are considered to be “severely disabled” can now also transfer taxable value from their current house to a new home – as long as the value of the new house is less than or equal to the value of the previous home.

Other improvements for certain segments of the population in California are, surprisingly, not well known throughout the state – most likely due to unintentionally poor communications from folks in state leadership roles;  plus  confusing coverage by the media.  Improvements, for example, as of April 2021 when Proposition 19 gave victims of wildfires and other natural disasters – regardless of age or disabilities – the right to transfer lower taxable value to a new home.

If this pertains to you, it would definitely be worthwhile to investigate, and discuss with well known property tax relief  experts such as, for example, attorney Rachelle Lee-Warner, Esq., a senior partner at estate, trust and tax planning law firm Cunningham Legal in Oakland Hills, CA with many other offices throughout California, specializing in Trust Administration; or Michael Wyatt Consulting in Corona,CA, specializing in real estate transactions, using an irrevocable trust loan, and property tax relief in general.  Or any firm with similar focus and equivalent experience.  

Having a seasoned specialist  like that to help guide you through some of the new advantages Proposition 19 offers  ends up saving you a lot of money on property taxes, if you meet the requirements.

For example, if you’re a  homeowner over 55 or are “severely disabled”, you won’t be limited to buying a new house and transferring your lower tax base only within the same county that your previous home was situated in. Now, you can  relocate to any of the 58 counties in California and still retain your previous, low property tax rate.  

CA Property Tax Relief Improvements Reported in the Media

ABC-10 News, in addressing property tax relief changes, confirms that: “…this law benefits seniors, the disabled, and victims of wildfires and disasters. California property owners are paying the same taxes based on the price they originally paid after California enacted a law to keep property taxes down in 1978. Proposition 19 lets people keep their tax base when they move anywhere in California up to three times and only pay higher property taxes on the difference. This would allow wildfire victims to move anywhere in the state without facing massive tax hikes.”  (2)

Interviewed on KPBS News, Jordan Marks, a taxpayer advocate for the San Diego County Assessor’s Office also offers his opinions.  Mr. Marks tells us: “Seniors are gonna get the benefit to transfer their replacement property. So they sell their primary home and they can get a second one, and they can do it three times now versus the one time allowed under the former tax law.” (3)

Members of the state Board of Equalization are eager to address the type of confusion we mentioned earlier, that is often associated with the Proposition 19 tax law.  Mr. Gary Gartner at the CA Board of Equalization tells us: “We have a lot of constituents calling in expressing [mixed] opinions of the new law. The board is trying to work out ambiguities in the law with assessors around the state and legislators in Sacramento. To that end, the board is holding virtual town hall meetings just to give people the opportunity to better understand the complexity of this law, which is really challenging…” (4)

The value of any new house can be larger than the value of a previous home – although the increase in value naturally has to be added to the previous home’s transferred assessed value. If this seems confusing, you can always enlist help from a property tax consultant or trust lender.

Trust Loans & Estate Lending in Concert With New Property Tax Breaks

Beneficiaries that are selling their inherited property shares actually receive more money through a trust loan than if they were to sell their inherited property to an outside buyer – by avoiding realtor fees and other costs,  each of those co-beneficiaries receives, on average, an extra $15,000+. While the heir or beneficiaries retaining the family house get to save $6,200 on average per year in property taxes. This savings adds up. (5)

It may sound complicated, but when you speak to  a trust lender or  property tax consultant, the details become clearer after you apply your own specs in discussion with a property tax specialist.  To discuss a home you may be inheriting, as well as property tax savings – Call attorney Rachelle Lee-Warner, Esq. at Cunningham Legal, Michael Wyatt Consulting, the Trust Lender Commercial Loan Corp, or the Property Tax News at (877) 756-4454.