Property Tax with Living Trust California
Key facts about living trusts and California property tax:
- Transferring home TO trust: NO property tax increase (excluded from reassessment)
- When you die: Children can inherit with Prop 13 protection (up to $1M primary residence)
- Prop 19 rules (Feb 2021+): Parent-child exclusion limited to $1M for primary residence only
- Proper trust language: Ensures children claim exclusion and avoid $10,000-$20,000/year tax increase
Living Trust California includes all Prop 13 protection language for $150.
Does Living Trust Trigger Property Tax Reassessment California?
NO. Transferring your home to your living trust does NOT trigger property tax reassessment.
Revenue & Taxation Code §62(d) exempts trust transfers:
- Transfer from you to your revocable living trust = NO reassessment
- You remain "original owner" for tax purposes
- Property tax stays at current low Prop 13 rate
Proposition 13 Living Trust California
Prop 13 limits property tax increases to 2% per year. If you bought home years ago:
| Year Purchased | Purchase Price | Current Value | Annual Tax (Prop 13) | Without Prop 13 |
|---|
| 1990 | $200,000 | $1,000,000 | ~$3,600 | ~$12,000 |
| 2000 | $350,000 | $950,000 | ~$5,200 | ~$11,400 |
| 2010 | $450,000 | $850,000 | ~$6,400 | ~$10,200 |
Prop 13 saves $6,000-$8,400/year in property taxes.
Prop 19 Parent-Child Exclusion (2021+)
NEW RULES (February 16, 2021 forward):
Parent-child exclusion now limited to:
- Primary residence only (NOT rental properties, vacation homes)
- Up to $1 million of assessed value over current assessed value
- Child must use as primary residence within 1 year
Example:
- You bought home in 1985 for $150,000
- Current assessed value (with Prop 13): $300,000
- Current market value: $900,000
- Your child inherits and lives in home
- Result: Child's assessed value = $300,000 + $0 = $300,000 (no reassessment, full Prop 13 protection)
Living Trust Property Tax Protection Language
Your trust MUST include:
- Proper parent-child transfer language
- Prop 19 compliance provisions
- Instructions for claiming exclusion
- BOE-58 form filing requirements
Living Trust California includes all required Prop 13/Prop 19 language.
🏆 Protect Your Prop 13 Rate: Living Trust California
Attorney-reviewed trust with full Prop 13/Prop 19 protection for $150:
- ✓ Prop 13 protection language included
- ✓ Prop 19 compliance provisions
- ✓ Parent-child exclusion instructions
- ✓ Save children $10,000-$20,000/year in property taxes
- ✓ California attorney review INCLUDED
Create Trust with Prop 13 Protection — $150 →
Key Takeaways
- NO property tax increase when you transfer home to trust
- Prop 13 protection passes to children (up to $1M primary residence)
- Saves children $10,000-$20,000/year in property taxes
- Prop 19 limits exclusion to primary residence only (2021+ transfers)
- Trust must include proper language for Prop 13/19 protection
- Cost: $150 for attorney-reviewed trust with all protections