If you’ve recently inherited a property, it’s crucial to understand how Proposition 19, passed in 2020, impacts the property’s tax assessment. Before Proposition 19, inherited properties were not reassessed until they were sold, and any additional tax burden was transferred to the new buyers. However, under Proposition 19, the property is now reassessed at the time of the decedent’s death, meaning the clock on accruing supplemental taxes starts immediately.
If one of the trust beneficiaries plans to occupy the home as their primary residence, they can retain the existing assessed value and benefit from the lower tax base. However, the longer they wait to transfer the property, the trust will still be responsible for the accruing supplemental property taxes. This additional tax burden can add up to thousands of dollars, reducing the overall value for the beneficiaries.
Even if you haven’t received a notice from the assessor’s office, the property may already be accumulating significant supplemental taxes. As the trustee, delaying the sale or transfer could lead to a larger tax burden that diminishes the funds available for beneficiaries.
To avoid losing unnecessary funds to taxes, it’s important to act quickly. We recommend reaching out to your local assessor’s office to confirm the status of the property and discuss the implications of Proposition 19. The sooner the property is listed, sold, or transferred, the better you can protect the financial interests of the beneficiaries.
If you need a mortgage and a fast close, don’t hesitate to reach out to us. We’re here to assist with all your financing needs to ensure a smooth and timely process.
If you have any questions or need guidance, feel free to contact us for assistance.
