If you’re a California homeowner — or you’ve recently inherited a home — Prop 19 could have a big impact on your property taxes. But what is it, and who actually benefits?
Let’s break it down in plain English.
✅ What Is Prop 19?
Prop 19 is a California law passed in 2020 that expanded tax savings for some and eliminated them for others. Its main focus is on property tax reassessments and how your tax base can (or can’t) be transferred.
It primarily affects:
- Seniors aged 55 and over
- People with severe disabilities
- Victims of natural disasters
- Heirs who inherit property
🏠 How It Helps Seniors and Disaster Victims
If you’re over 55, disabled, or lost your home in a wildfire or earthquake, you can transfer your existing property tax base to a new home — anywhere in California.
Here’s what changed:
- You can do this up to 3 times (previously only once)
- The new home can cost more than the old one (you’ll pay a blended tax rate)
- It applies statewide — not just in your county
This makes it easier for older or displaced homeowners to downsize, relocate, or get closer to family without a major tax penalty.
🚫 How It Changed Inherited Property Rules
Before Prop 19, kids could inherit their parents’ home and keep the same low property tax — even if they turned it into a rental or second home.
Now?
- The home must be used as the heir’s primary residence
- If not, it gets reassessed to full market value, often leading to huge tax increases
This has major implications for estate planning, trusts, and inherited real estate.
🤝 Who Should Pay Attention to Prop 19?
- Seniors thinking about moving or downsizing
- Heirs trying to decide whether to sell or keep an inherited property
- Families looking to preserve wealth through strategic real estate moves
If you’re in any of these situations, it’s worth reviewing your options. The right move could save you thousands in property taxes — or cost you, if you’re not prepared.
🧭 Next in This Series:
In Part 2, we’ll dive deeper into inherited property and what heirs need to know to avoid unexpected tax surprises.
📞 Have Questions?
Let’s talk through your situation. I can connect you with trusted estate planning professionals or help you evaluate whether Prop 19 opens up a new opportunity for you or your family.
