How does Prop 19 affect inheriting and selling the family home?

Prop 19 changed California inheritance significantly. Before Prop 19, parents could transfer their Prop 13 assessed value (sometimes hundreds of thousands below market) to their children regardless of whether the child lived in the home. After Prop 19, that transfer only happens if the child makes the inherited home their primary residence within one year — and even then, only the first $1M of the difference between assessed value and market value is protected. Above that $1M, the property gets reassessed at current market.

What this means in practice: if you inherit your parents' home and don't move in within a year, the property will be reassessed to current market value. In the East Bay, that often triples or quadruples the annual property tax bill, frequently making it uneconomical to keep as a rental.

This is one of the most common reasons families sell inherited homes today rather than hold them. The tax cost of holding has gone up dramatically.

I am not your tax advisor or your attorney. The specifics of your inherited property's basis, your residency, and your timing all matter, and the Prop 19 implementing regulations have nuance you need to work through with a CPA or estate attorney. Roger works with several East Bay specialists he can refer you to.

This is a starting point, not the complete answer. Real estate decisions depend on details that don't fit in an FAQ — your numbers, your timeline, your family situation. Call (510) 504-0402 during the day, text or call (406) 205-9003 anytime, or email roger@grubb.net. I'll walk you through it personally.