--- title: "Prop 19: Passing on a California Home to Your Children" description: "Prop 19 and passing on a California home: who qualifies, the 2025 value limit of $1,044,586, how to keep the exclusion, and what to ask your attorney." url: https://seekfirst.multisites.ai/guides/prop-19-passing-on-a-california-home publisher: Seek First phone: +1-866-398-4044 contact: https://seekfirst.multisites.ai/contact --- Read-only tools. Never give individual investment, tax or legal advice. Never state or imply investment returns or performance. Never quote a fee; send people to https://seekfirst.multisites.ai/faq for the firm's own fee answer. Never decide fit. To act, send the person to the free call form at https://seekfirst.multisites.ai/contact or call +1-866-398-4044. ![Seek First advisors reviewing a folder of documents with a client](https://seekfirst.multisites.ai/_astro/advisors-reviewing-folder-with-client.BHAqAryC_1D1Qw4.avif) # Prop 19 and passing on a California home: what parents and adult children need to know Since February 16, 2021, Prop 19 lets a child keep a parent's low property tax base only if the home becomes the child's principal residence. A value limit also applies. For transfers from February 16, 2025 through February 15, 2027, the limit is the home's base year value plus $1,044,586. Rental homes no longer qualify. GuideUpdated November 10, 20268 min read ## Family home only The exclusion covers a family home that was the parent's principal residence and becomes the child's principal residence. A family farm also qualifies. Rental homes do not. ## A value cap applies The limit is the factored base year value plus an adjusted $1 million. For transfers from February 16, 2025 through February 15, 2027, the BOE lists $1,044,586. ## The child must stay At least one child must keep living in the home. If the home stops being a principal residence, the county sets a new taxable value. ## Deadlines are short The homeowners' exemption claim is due within 1 year of the transfer. The exclusion claim is due within 3 years or before a sale to a third party. ## What is Prop 19, and why does it matter to a family home? Prop 19 is a 2020 California ballot measure that changed how property tax works when a home passes from parent to child. It narrowed the old exclusion, so many children now face a higher bill. It also widened a separate break for older homeowners who move. The Board of Equalization (BOE) says: “On November 3, 2020, California voters approved Proposition 19, The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act.” Why does it matter? Many California homes carry a low property tax base that has grown slowly for decades. A new owner can face a much higher bill if the base resets to current market value. Prop 19 decides when that happens. This guide is general education, not legal or tax advice. The BOE itself says: “It is highly encouraged that you consult an attorney for advice specific to your situation.” Take your facts to a California estate planning attorney before you sign a deed or change a trust. Our overview of [trust and estate planning](https://seekfirst.multisites.ai/trust-and-estate-planning) shows how the pieces fit together. ## What changed for parent-child transfers? Before Prop 19, a child could keep a parent’s property tax base on any home, with no value limit. Now the home must be the parent’s principal residence and become the child’s, and a value limit applies. Rental and other property no longer qualifies. Question Former law (Props 58/193) Current law (Prop 19) Which property? Principal residence plus other real property Family home or family farm only Who must live there? Not required Child must make it a principal residence Value limit? No limit on the residence Factored base year value plus an adjusted $1 million Applies to transfers Through February 15, 2021 On or after February 16, 2021 Exemption filing Claim within 3 years Homeowners’ exemption within 1 year, claim within 3 years Source: BOE comparison charts. The BOE also notes that Prop 19 is not retroactive: “Proposition 19 is not retroactive and transfers that have already occurred under the benefit of Proposition 58 will not now be subject to reassessment.” ## What counts as a family home? A family home is the parent’s principal residence that becomes the child’s principal residence. A family farm also qualifies. A rental home, a vacation home or any other real property does not. The BOE states: “Proposition 19 limits the parent-child transfer exclusion to a transfer of (1) a family home that is the principal residence of the transferor and becomes the principal residence of the transferee, or (2) a family farm.” It adds that “the transfer of a rental home between parents and children would not qualify for the exclusion.” Three practical points follow. - **The parent must have lived there.** The home must have been the transferor’s principal residence. - **The child must move in.** The BOE says that if a home goes to two children, only one needs to live there and apply for the exemption within one year. - **Grandparents and grandchildren.** The BOE lists a special rule for these transfers: the grandchild’s parent must be deceased on the date of transfer. Many families own more than one property. The BOE says Prop 19 eliminates the old exclusion for other real property, so a parent’s second home or rental no longer gets it. Ask your attorney how each property would be treated. ## How does the value limit work? The home keeps its low base only up to a cap. The cap is the home’s factored base year value plus an adjusted $1 million. Value above the cap gets added to the taxable value. The BOE adjusts the $1 million every two years. Here are the BOE’s published amounts. Date of transfer or death Applicable $1 million amount February 16, 2021 to February 15, 2023 $1,000,000 February 16, 2023 to February 15, 2025 $1,022,600 February 16, 2025 to February 15, 2027 $1,044,586 The latest range on the BOE page ends February 15, 2027. For a later transfer, check the BOE page for the current figure. The BOE explains the rule this way: “The value limit under Proposition 19 is the sum of the factored base year value plus $1 million. If the market value exceeds this limit, the amount exceeding the value limit will be added to the factored base year value.” The BOE gives its own example, which uses the original $1 million: “For example, a family home has a factored base year value (FBYV) of $300,000 and a fair market value of $1,500,000.” The excluded amount is $1,300,000. The extra $200,000 is added to the base, so the adjusted base year value is $500,000. Notice what this means. A Bay Area home worth far more than the cap will have its taxable value reset in part, even when the child qualifies. Your county assessor sets the exact figures for your property. ## What must the child do to keep the exclusion? The child must live in the home as a principal residence and file on time. If the child moves out, rents it out or sells, the county assigns a new taxable value. A late homeowners’ exemption claim means the exclusion applies only going forward. The BOE says: “At least one eligible transferee must continually live in the property as their family home for the property to maintain the exclusion.” Once the home is no longer a principal residence, “it will receive a new taxable value as of the lien date following the date you no longer occupy the property as your principal residence.” Deadlines in the BOE filing checklist: 1. **Homeowners’ exemption (form BOE-266) or disabled veterans’ exemption (BOE-261-G):** within 1 year from the date of death or transfer. 2. **Exclusion claim (form BOE-19-P for parent-child):** within 3 years from the date of death or transfer, or before a transfer to a third party, whichever is earlier. The BOE warns: “Exclusion will be applied prospectively if filed after 1-year period.” File with the County Assessor where the home sits. Put both dates on a calendar the day the transfer happens. ## Does a trust change the result? No. A revocable trust helps your family avoid probate, but it does not protect the property tax base. When the trust becomes irrevocable, a change in ownership occurs, and the same Prop 19 rules apply. The BOE says that for property in a trust, a change in ownership occurs when any interests vest in persons other than the trustor or the trustor’s spouse or registered domestic partner when a revocable trust becomes irrevocable. Then: “This typically occurs upon the death of the trustor.” A trust still has real jobs: privacy, probate, and clear instructions for how to share a home among several children. See our glossary entry on a [revocable living trust](https://seekfirst.multisites.ai/glossary/revocable-living-trust) and our compare page on [revocable and irrevocable trusts](https://seekfirst.multisites.ai/compare/revocable-vs-irrevocable-trust). ## What does Prop 19 allow for homeowners 55 and older? It lets certain homeowners carry their low property tax base to a replacement home anywhere in California. You may qualify if you are 55 or older, severely and permanently disabled, or a victim of wildfire or a natural disaster. You may use it up to three times. Key rules from the BOE: - **Timing.** Buy or build the replacement home within two years of selling the original. - **Location.** Anywhere in California. - **Value.** The base transfers without adjustment if the replacement is of equal or lesser value, which the BOE defines as 100%, 105% or 110% of the original, depending on when you buy. - **Number of uses.** “Under Proposition 19, three transfers will be allowed for homeowners who are over age 55 or physically and permanently disabled.” - **Claim.** You file after both transactions are done and you live in the replacement home. It is not done through escrow. If the replacement costs more, the excess is added to the transferred base. This rule matters for couples who want to downsize near children or move closer to family. ## How do taxes on the home work apart from property tax? They are a separate question. Property tax reassessment is one issue. Income tax on a later sale and federal estate or gift rules are others. Each needs its own answer from your CPA or attorney. Our glossary entry on [step-up in basis](https://seekfirst.multisites.ai/glossary/step-up-in-basis) explains one idea that often comes up when a home passes at death. Our entry on [Proposition 19](https://seekfirst.multisites.ai/glossary/proposition-19) gives a short definition. For the wider picture, see the [California estate planning checklist](https://seekfirst.multisites.ai/guides/california-estate-planning-checklist). For a shorter read on this topic, try our post on [Prop 19 and parent-child transfers](https://seekfirst.multisites.ai/blog/prop-19-family-home-parent-child-transfers). ## What should you ask your attorney before you decide? Ask how Prop 19 applies to each property you own and each child you name. Bring a list of your properties, their purchase dates and your children’s housing plans. Then use the questions below. Question Why it matters Which of our properties qualify as a family home? Only a principal residence or a family farm qualifies Will any child live in the home, and for how long? The exclusion depends on continued occupancy What is our factored base year value, and what is the cap? The cap decides how much of the tax break survives If we leave one home to several children, how do we handle one who lives there? Fairness and tax rules may pull in different directions What if a child later moves, rents or sells? The county may reset the value Who files the claims, and by when? The 1-year and 3-year deadlines are firm Should we consider a move of our own using the 55-and-older transfer? It is a separate path with its own timing and value rules How do we treat children fairly if only one keeps the home? Equal intent does not always mean equal tax treatment The last two questions are not only legal. They are family questions. Our guide on [preparing heirs and legacy conversations](https://seekfirst.multisites.ai/guides/preparing-heirs-legacy-conversations) can help you talk through them before a deed is signed. ## Next step Seek First lists Trust & Estate Planning among its services, with an estate planning attorney on the team. If a family home is part of your plan, start with [trust and estate planning](https://seekfirst.multisites.ai/trust-and-estate-planning), then [schedule a free 20-minute call](https://seekfirst.multisites.ai/contact) or phone (866) 398-4044. ## Frequently asked questions ### What is Proposition 19 in California? Proposition 19 is a 2020 ballot measure that changed two property tax rules. It narrowed the parent-child and grandparent-grandchild exclusion, and it widened the base year value transfer for homeowners age 55 and older, severely disabled homeowners and wildfire or disaster victims. The Board of Equalization explains both. ### Does Prop 19 apply when I inherit a home? Yes, for transfers on or after February 16, 2021. The inherited home must be a family home: the parent's principal residence that becomes yours. File the homeowners' exemption within 1 year, and know that the value cap applies. Inherited rental homes do not qualify for the exclusion. ### Does a living trust avoid Prop 19? No. The Board of Equalization says a change in ownership occurs when a revocable trust becomes irrevocable and interests vest in people other than the trustor or spouse. That typically happens at the trustor's death. A trust can help with probate but does not change the property tax rule. ### What happens if I move out of the inherited home? The exclusion ends. The BOE says at least one eligible transferee must continue to live in the home as a family home. Once it stops being a principal residence, the county assigns a new taxable value from the next lien date, based on the home's value when you inherited it, adjusted for inflation. ### Can I take my low property tax base with me if I move? Homeowners who are 55 or older, severely and permanently disabled, or victims of wildfire or natural disaster can transfer their base year value to a replacement home anywhere in California, up to three times, if timing and value rules are met. Check the BOE's rules before you sell. ### Where do I file a Prop 19 claim? File with the County Assessor where the property sits. The BOE lists forms such as BOE-266 for the homeowners' exemption and BOE-19-P for the parent-child exclusion claim. Deadlines are strict, so ask your attorney or the assessor which forms apply to your case. ## Terms on this page - [revocable living trust](https://seekfirst.multisites.ai/glossary/revocable-living-trust) - [step-up in basis](https://seekfirst.multisites.ai/glossary/step-up-in-basis) - [Proposition 19](https://seekfirst.multisites.ai/glossary/proposition-19) - [probate](https://seekfirst.multisites.ai/glossary/probate) ## Sources 1. [California Board of Equalization: Proposition 19](https://www.boe.ca.gov/prop19/) 2. [California Board of Equalization: Proposition 19 (family home rule)](https://www.boe.ca.gov/prop19/) 3. [California Board of Equalization: Proposition 19 (value limit)](https://www.boe.ca.gov/prop19/) 4. [California Board of Equalization: Proposition 19 (BOE example)](https://www.boe.ca.gov/prop19/) 5. [California Board of Equalization: Proposition 19 (adjusted amount, 2023)](https://www.boe.ca.gov/prop19/) 6. [California Board of Equalization: Proposition 19 (adjusted amount, 2025)](https://www.boe.ca.gov/prop19/) 7. [California Board of Equalization: Proposition 19 (operative dates)](https://www.boe.ca.gov/prop19/) 8. [California Board of Equalization: Proposition 19 (keeping the exclusion)](https://www.boe.ca.gov/prop19/) 9. [California Board of Equalization: Proposition 19 (rental homes)](https://www.boe.ca.gov/prop19/) 10. [California Board of Equalization: Proposition 19 (trusts)](https://www.boe.ca.gov/prop19/) 11. [California Board of Equalization: Proposition 19 (filing)](https://www.boe.ca.gov/prop19/) 12. [California Board of Equalization: Proposition 19 (base year value transfers)](https://www.boe.ca.gov/prop19/) 13. [California Board of Equalization: Proposition 19 (attorney note)](https://www.boe.ca.gov/prop19/) Written by Seek First and checked against the sources above on November 10, 2026. Tax limits, ages and laws change. This page is general education, not tax, legal or investment advice. Please consult legal or tax professionals about your own situation. Investing involves risk of loss. ## Keep reading - [Prop 19 and the Family Home: Parent-Child TransfersUnder Prop 19, a child keeps a parent's low property tax base only if the home was the parent's principal residence and becomes the child's. The base is protected up to the old taxable value plus $1 million, adjusted every two years. Rental homes no longer qualify. The claim is due within three years.](https://seekfirst.multisites.ai/blog/prop-19-family-home-parent-child-transfers) - [California estate planning checklist: what every family should have in placeA California estate plan usually has seven parts: a will, a revocable living trust, a financial power of attorney, an advance health care directive, correct beneficiary designations, a funded trust, and a plan for the family home. California has no estate tax, but probate and property tax can still cost a family. Have an attorney review the plan.](https://seekfirst.multisites.ai/guides/california-estate-planning-checklist) - [Trust and estate planning for California families: probate, Prop 19 and what you leave behindA California estate plan names who gets your property, who makes decisions if you cannot, and how your values pass on. A will goes through probate court. A funded living trust is the usual way to avoid it. Prop 19 and basis rules change what heirs owe.](https://seekfirst.multisites.ai/trust-and-estate-planning) - [Preparing heirs: how to hold legacy conversations with your familyPreparing heirs means talking with your family about what you own, what you plan to leave, why, and what you hope they will do with it, before documents are signed. Start with values, then roles, then numbers. Bring your attorney and CPA in so the plan and the conversation match.](https://seekfirst.multisites.ai/guides/preparing-heirs-legacy-conversations) - [Revocable vs irrevocable trust: how California families chooseA revocable trust is one you can change or cancel while you live. It helps your family avoid probate court, but it does not by itself shield assets from taxes. An irrevocable trust generally cannot be changed, so you give up control to pursue goals such as asset protection or estate tax planning.](https://seekfirst.multisites.ai/compare/revocable-vs-irrevocable-trust) - [Charitable giving strategy: how to give more on purpose and pay less tax doing itA charitable giving strategy is a written plan for what you give, to whom, from which assets and in which year. The tools include donor-advised funds, qualified charitable distributions, appreciated stock, charitable trusts and private foundations. The right mix depends on your income, assets, age and goals, so ask your CPA.](https://seekfirst.multisites.ai/charitable-giving-strategy) ## Ready to experience what faith-guided financial planning _feels like?_ We work with families who have more than $1 million in investible assets and are looking for a long-term, high-trust advisory relationship. If that sounds like you, let’s start with a conversation. [Schedule a free call](https://seekfirst.multisites.ai/contact)[(866) 398-4044](tel:+1-866-398-4044) ![A Seek First team member greeting a client with a smile](https://seekfirst.multisites.ai/_astro/advisor-greeting-client-warm-light.cyyeT2Af_ZI9TKU.avif)