Who is an eligible grandchild in Proposition 58?

Propositions 58/193 [Transfers Between Parent and Child; Grandparent and Grandchild] An eligible “grandchild” for purposes of Proposition 193 is any child of parent(s) who qualify as child(ren) of the grandparents as of the date of transfer.

What kind of transfer is excluded from Proposition 58?

Proposition 58 is codified by section 63.1 of the Revenue and Taxation Code. Transfers of real property excluded from reassessment by Proposition 58 are: Transfer of principal residence (no value limit).

What’s the limit on principal residence in prop 58?

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.

How are property taxes calculated in Proposition 58?

Proposition 58 allow the new property owners to avoid property tax increases when acquiring property from their parents or children. The new owner’s taxes are calculated on the established Proposition 13 factored base year value, instead of the current market value when the property is acquired.

How does prop 58 apply to parent child transfers?

Parent-Child Transfers Prop 58 (R Section 63.1) The transfer of real property between parents and children may be excluded from reappraisal for property tax purposes. You must file a claim to determine eligibility.

Can a prop 58 loan help a beneficiary?

Prop 58 loans can help the beneficiary prevent a property tax reassessment when the property transfers from the name of the trust or estate into the name of the new owner (parent to child transfer). Inheriting a house with no mortgage provides the maximum amount of equity to divide among the heirs or siblings.