Under Proposition 19 (effective 2021), most inherited homes are reassessed to current market value unless the heir uses the property as their primary residence and the inherited value stays within certain limits. If the home isn’t used as a primary residence by the heir, property taxes can increase dramatically. This significantly changed the tax advantage of passing real estate to heirs in California. I help families understand the real estate implications of inheritance decisions and coordinate with estate and tax advisors as needed.
