These constitutional initiatives provide property tax relief for real property transfers between parents and children and from grandparents to grandchildren. State law also excludes from reassessment property transferred between husband and wife. Collectively, these exclusions make it easier to keep property “in the family.”
The inter-spousal exclusion protects the surviving spouse when a death occurs or when a spouse retains property in a divorce settlement from reassessment. There is no claim form required to be filed to establish the inter-spousal exclusion. However, supporting documentation, such as a divorce decree, settlement agreement, or death certificate may be requested by the assessor to establish the eligibility of the exclusion. For more information please see the FAQ's.
Prop 58 eligibility - Transfer Between Parent and Child
- The real property must be owned by the eligible transferor who is either the parent or child.
- You must be a parent or child. A child may be a son, daughter, son-in-law, daughter-in-law, stepchild, or child adopted before the age of 18 or a foster child of a state-licensed foster parent.
Spouses of eligible children are also eligible until divorce or, if terminated by death, until the remarriage of the surviving spouse, stepparent, or parent-in-law.
- You must complete a Claim for Reassessment Exclusion for Transfer between Parent and Child form for a gift or purchase of real property between parent and child.
Prop 193 eligibility- Transfer from Grandparent to Grandchild
- The real property must be owned by the eligible transferor who is the grandparent.
- You must be a grandchild whose parent(s) qualify as the deceased child(ren) of the grandparents as of the date of transfer, and you must be the decedent's child.
- You must complete a Claim for Reassessment Exclusion for Transfer from Grandparent to Grandchild form for a gift or purchase of real property from grandparent to grandchild.
Requirements and Guidelines
Children: Children include the following: sons and daughters, sons-in-law and daughters-in-law, stepchildren, and children adopted under 18.
Gift-Purchase: Transfers as a gift or purchase between parents and children are excluded with a completed Prop. 58 form.
Principal Residence: Proposition 58 does not require that the parent or child use the transferred property as his or her principal residence. In addition, the $1 million limit does not apply to the transferor's principal residence.
$1 Million Dollar Exclusion: The $1 million exclusion for other property applies for each transferor. Therefore, a mother can transfer $1 million of other property and a father can transfer $1 million of other property for a total combined exclusion of $2 million.
Legal Entities: Generally, transfers directly between legal entities owned by parents and children are not entitled to the benefits of this measure.
Trusts: A transfer to or from a trust is treated just as a transfer to or from the trustor personally, provided the trust is revocable or the trustor retains the present beneficial use, possession, or enjoyment of the transferred property.
Date of Death of Decedent: The date of any transfer between parents and their children under a will or intestate succession is the date of a decedent's death, provided the decedent died on or after November 6, 1986.
"Third Party" Defined: A third party is any person or entity that is not a transferee or transferor in the transfer between the parents and children.
"Transfer of the Real Property to a "Third Party": For filing proposes, a transfer of the real property to a third party occurs when all the real property received is transferred to someone other than an original transferee or transferor. Therefore, a transfer may qualify for an exclusion when a partial interest in the property received is transferred to a third party prior to an application being filed.
Filing Requirements: Current law requires that the claim be filed within three (3) years after the date of the transfer of real property or prior to the transfer of the real property to a third party, whichever is earlier. However, even if a claim is not made within this filing period, a claim is considered timely if it is filed anytime prior to or within six (6) months after the mailing date of a Notice of Supplemental Assessment or Notice of Proposed Escape Assessment, whichever is later. For example if a taxpayer received a Notice of Supplemental Assessment for a parent-child transfer dated January 1, 1994, and then received a Notice of Proposed Escape Assessment dated April 1, 1994, the taxpayer would have six (6) months from April 1, 1994 to file a claim with the Assessor.
Transfers Occurring On Or Prior To February 15, 2021:
- Exclusion for Transfer between Parent and Child (BOE-58-AH) (PDF): Excludes real property from reappraisal for qualifying transfers. Fee may apply for late filed exclusion (PDF)
- Exclusion for Transfer from Grandparent to Grandchild (BOE-58-G) (PDF): Excludes real property from reappraisal if parents are deceased for qualifying transfers. Fee may apply for late filed exclusion (PDF)
Transfers Occurring On Or After February 16, 2021:
- Exclusion for Transfer between Parent and Child (BOE-19-P) (PDF): Excludes real property from reappraisal for qualifying transfers. Fee may apply for late filed exclusion.
- Exclusion for Transfer between Grandparent and Grandchild (BOE-19-P) (PDF): Excludes real property from reappraisal if parents are deceased for qualifying transfers. Fee may apply for late filed exclusion.