Prop 19 Parent-Child Exclusion: Keeping a Lower Property Tax Base When a Child Inherits the Family Home

Quick answer: can a child keep a parent's property tax base under Prop 19?

Short answer: Under Prop 19, a child may keep a parent's lower property tax base only on a family home or family farm. The child must make the home their principal residence and file for the homeowners' or disabled veterans' exemption within one year, and file BOE-19-P. The exclusion is capped at factored base year value plus $1,044,586.

Sometimes, and only for a family home or family farm. Under Proposition 19 (Cal. Const. art. XIII A, §2.1, implemented by Rev. & Tax. Code §63.2), a parent's family home can pass to a child without full reassessment if the home was the parent's principal residence, the child makes it their own principal residence within one year, and the child files for the homeowners' (or disabled veterans') exemption within one year of the transfer. A separate claim form, BOE-19-P, must also be filed with the county assessor.

The exclusion is capped. For transfers from February 16, 2025 through February 15, 2027, the child keeps the parent's taxable value only up to the property's factored base year value plus $1,044,586. Market value above that cap is added to the taxable value. Rentals and second homes no longer qualify.

A living trust does not change these rules. A funded trust may help the home pass to your child without probate, but Prop 19 applies the same way whether the home passes through a trust or not.

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What did Prop 19 change compared with Prop 58 and Prop 193?

California voters approved Proposition 19 on November 3, 2020. Its changes to the parent-child and grandparent-grandchild exclusion became operative on February 16, 2021. Transfers on or before February 15, 2021 remain under the former rules, commonly called Propositions 58 and 193, and Prop 19 is not retroactive for those transfers.

The BOE summarizes the main differences:

For a parent's death, the date of death is treated as the date of transfer.

What counts as a "family home" under Prop 19?

The BOE describes a family home as a dwelling that was eligible for the homeowners' or disabled veterans' exemption because the parent owned and lived in it, plus a reasonable-size homesite. For the exclusion to apply:

1. The home must have been the parent's principal residence.
2. It must become the child's principal residence within one year of the transfer. The BOE states there are no exceptions to this rule.
3. The child must file for the homeowners' exemption (form BOE-266) or the disabled veterans' exemption (form BOE-261-G) with the county assessor within one year of the transfer. If that exemption claim is filed later, the exclusion generally applies only going forward from the year it is filed.

The home must also stay the family home. According to the BOE, at least one eligible child must keep living there as a principal residence. If no eligible child lives there anymore, the property is reassessed as of the next lien date. If a different eligible child moves in within one year of the previous child moving out, the exclusion can continue.

"Children" for this purpose include biological children, children adopted before age 18, and also certain stepchildren, in-law children, and foster children, as defined in §63.2 and explained in BOE Letter To Assessors No. 2026/026.

How does the Prop 19 value cap work in 2026?

The exclusion has a ceiling. The BOE calls it the value cap: the home's factored base year value (its current taxable value) plus a fixed amount, which started at $1,000,000 and is adjusted every other February 16 for changes in the California House Price Index.

Source: BOE Letter To Assessors No. 2025/009 (March 7, 2025) and the BOE Proposition 19 page. The next adjustment is scheduled for February 2027.

If the home's market value on the transfer date is at or below the cap, the child generally keeps the parent's taxable value. If it is above the cap, the difference is added to the parent's taxable value.

Illustration using the BOE's method (not a prediction for your home): a home with a factored base year value of $300,000 and a market value of $1,500,000 is transferred in 2026. The cap is $300,000 + $1,044,586 = $1,344,586. The excess is $1,500,000 minus $1,344,586 = $155,414, so the new taxable value would be about $300,000 + $155,414 = $455,414. Your county assessor determines actual values.

Does Prop 19 apply to rental homes, second homes, or family farms?

• Rental homes and second homes: generally no. The BOE states that Prop 19 limits the exclusion to a family home that is the principal residence of both parent and child, or a family farm. A rental home passing from parent to child does not qualify.
• Family farms: yes, but under separate terms. A family farm does not need a home the child lives in, the value cap applies to each legal parcel, and the farm must continue as a family farm of an eligible child. This guide focuses on the family home; ask counsel about farm property.
• Prop 19 for homeowners 55 and older: Prop 19 also lets homeowners who are 55 or older (or severely disabled) move their taxable value to a replacement home. That is a different rule, with different forms, and it is not the focus of this guide.

When and how do you file the BOE-19-P claim?

Two separate filings matter for a family home, both with the county assessor where the property is located:

1. Homeowners' or disabled veterans' exemption (BOE-266 or BOE-261-G): within one year of the transfer to get the exclusion back to the transfer date.
2. BOE-19-P, Claim for Reassessment Exclusion for Transfer Between Parent and Child Occurring On or After February 16, 2021: within three years of the transfer, before the property is transferred to a third party, or before an eligible child no longer lives in the home, whichever is earlier. A claim is also treated as timely if filed within six months after the assessor mails a supplemental or escape assessment notice for the transfer.

For some homes damaged or destroyed in the 2025 Palisades, Eaton, Hurst, Lidia, Sunset, or Woodley fires, a 2026 amendment to §63.2 (SB 293) allows more time when specific conditions are met: the claim can be filed within three years, and the exemption within one year, after the assessor mails a supplemental or escape assessment notice, for claims filed before January 1, 2031.

If every deadline passes and the child still owns the home, the BOE says a late claim can still get relief, but only going forward from the year it is filed (the BOE calls this "prospective relief").

For a grandparent-to-grandchild transfer, the form is BOE-19-G, with the same filing periods.

Many county assessors post these forms online. For questions about your property, contact your county assessor's office. The BOE's Prop 19 page lists contacts for all 58 county assessors.

Does a grandchild qualify for the Prop 19 exclusion?

Only in limited cases. The BOE explains that the grandparent-grandchild exclusion applies only if all of the grandchild's parents who are children of the grandparent are deceased on the date of transfer (a stepparent does not need to be deceased). The same family home, one-year residency, exemption, and value-cap rules then apply.

Does a living trust avoid Prop 19 reassessment?

No. A revocable living trust does not change the Prop 19 outcome. Here is how trusts and property tax interact, based on BOE guidance:

• Putting your home into your own revocable trust is generally not a change in ownership, so it does not trigger reassessment by itself (Property Tax Rule 462.160(b)(2)).
• At death, when a revocable trust becomes irrevocable and the home vests in someone other than the trustor or the trustor's spouse or registered domestic partner, a change in ownership generally occurs. The date of death is the date of change in ownership.
• The BOE "looks through" the trust. If the child who receives the home meets the Prop 19 requirements, a transfer through a trust can qualify for the exclusion the same way a transfer outside a trust can.

So what does a trust do? A properly funded trust may help the home pass to your child without probate, lets a successor trustee manage the home if you become incapacitated, and can include instructions about whether the home should be kept or sold. See how to fund a living trust and living trust vs. will. A TOD deed also does not change Prop 19, and neither does the court petition described in our AB 2016 home petition guide.

What should a successor trustee keep in mind about Prop 19?

If you are the successor trustee and the trust leaves the family home to one or more children, the property tax clock generally starts at the date of death, not when the trust distributes the home. Points to raise early with counsel:

• The one-year residency and exemption deadlines run from the transfer date. The BOE has said that even when a trustee has not yet distributed the property, an eligible child must still occupy the home within one year of the transfer to qualify.
• Siblings sharing the home: only one eligible child needs to live in the home and claim the exemption, according to the BOE. But a later transfer from one sibling to another (for example, a buyout after distribution) is generally treated as a separate transfer that does not qualify, so the structure and timing of distributions matter.
• Transfers to an LLC or other third party before the claim is filed can end eligibility. The BOE treats a transfer to an LLC, even one owned only by the child, as a transfer to a third party.

Our successor trustee checklist covers the broader duties of administering a trust. For trust administration help, see trust administration.

When should you talk to a CPA or tax professional?

Prop 19 is a property tax rule, but it sits next to income tax questions such as the basis of an inherited home. Bring in a CPA or tax professional when a child is deciding whether to move in, rent, or sell, or when siblings are weighing a buyout. For questions about how the assessor will treat a specific transfer, contact your county assessor. For a broader view of taxes at death, see our guide to California estate and inheritance tax.

How can CBM help?

CBM Estate & Trust Law helps California families plan how a home will pass, including living trusts, trust funding, and support for successor trustees during trust administration. We can talk through how your home fits into your plan and what questions to bring to your county assessor and tax professional. Carmen B. Marquez has practiced estate planning since 2001, and the firm was founded in 2012. Carmen speaks Spanish. Learn more on our estate planning page. CBM does not offer probate services.

General information, not tax advice. Talk to a CPA or tax professional about your situation, and contact your county assessor about reassessment.

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Related guides

• TOD deed vs. living trust in California
• AB 2016 $750,000 home petition vs. a living trust
• Trust funding
• Trust administration
• Estate planning glossary

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Frequently asked questions

Does Prop 19 apply if the house is in a living trust?

Yes. The BOE looks through the trust to see who receives the home. Putting the home into your own revocable trust is generally not a reassessment event, but when the trust becomes irrevocable at death and the home goes to a child, Prop 19's family home rules apply the same way they would outside a trust.

What is the deadline to file BOE-19-P?

File it with the county assessor within three years of the transfer, before the property is transferred to a third party, or before an eligible child no longer lives in the home, whichever is earlier. A claim is also timely if filed within six months after the assessor mails a supplemental or escape assessment notice for the transfer. Separately, the homeowners' or disabled veterans' exemption must be filed within one year of the transfer.

What is the Prop 19 value cap in 2026?

For transfers from February 16, 2025 through February 15, 2027, the cap is the property's factored base year value plus $1,044,586, according to BOE Letter To Assessors No. 2025/009. The BOE adjusts the amount every other year, with the next adjustment due in February 2027.

Can siblings share the exclusion if only one lives in the home?

Generally yes. The BOE says both children do not need to live there, as long as at least one eligible child makes it their principal residence and files the exemption within one year, and other requirements are met. A later sale or gift of one sibling's share to another is generally a separate transfer that does not qualify.

What if the child rents the house out?

A home that the child rents out instead of living in does not meet the principal residence requirement, so the parent-child exclusion generally will not apply. If an eligible child lived there and later moves out, the home is generally reassessed unless another eligible child moves in within one year.

Does a grandchild qualify?

Only if all of the grandchild's parents who are children of the grandparent have died by the date of transfer (a stepparent does not need to be deceased). The grandchild files form BOE-19-G and must meet the same family home, exemption, and value-cap rules.

Does Prop 19 apply to gifts during life as well as transfers at death?

Yes. The exclusion covers transfers between the living and transfers at death, whether inside or outside a trust. For a transfer at death, the date of death is the transfer date.

Should I add my child to the deed now because of Prop 19?

Not without advice. Adding a child to title can itself be a transfer, and a transfer during life can raise property tax and income tax questions. Book a free 60-minute consultation with CBM to talk through your home and goals, and check property tax questions with your county assessor. /contact · (805) 915-4793 · Trusts@cbm.estate

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What sources does this guide rely on?

• California Constitution, art. XIII A, §2.1 (Proposition 19).
• Revenue and Taxation Code §63.2 (intergenerational transfer exclusion).
• BOE, Proposition 19 page and comparison chart.
• BOE, Letter To Assessors No. 2025/009 (adjustment to $1,044,586).
• BOE, Letter To Assessors No. 2026/026 (Prop 19 intergenerational exclusion questions and answers, August 3, 2026).
• BOE, Publication 801, Proposition 19 Fact Sheet (June 2025).
• BOE, Property Tax Rule 462.160 (change in ownership, trusts).

Next step

A family home is often a family's largest asset, and Prop 19 deadlines start at the transfer date. A clear plan for how the home passes, and who will handle it, can make the transition easier for your children.

Book a free 60-minute consultation · /contact · (805) 915-4793 · Trusts@cbm.estate

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Attorney advertising. This guide is general educational information about California law as of the date above. It is not legal or tax advice, does not create an attorney-client relationship, and may not reflect later changes in statutes, BOE guidance, or forms. Consult an attorney and a CPA or tax professional about your situation. Results depend on your facts; no outcome is guaranteed. CBM Estate & Trust Law (Carmen B. Marquez, P.C.) practices in California only.