Prop 19 Compliance Updates
Trust Revision Services
Estate Plan Health Check
California's Property Tax Laws Have Changed. Has Your Estate Plan?
With the passage of Proposition 19, many long-standing estate plans—particularly those relying on outdated living trusts—have become dangerously misaligned with current property tax law. If your estate plan was created before February 16, 2021, your trust likely does not account for the devastating property tax reassessment consequences triggered by this new law.
At the Law Office of James Burns, we offer a Prop 19 Trust Revision Service and a full Estate Plan Health Check to identify, repair, and strategically update your trust to avoid costly surprises.
⚠️ What Changed Under Proposition 19?
Before Prop 19:
A parent could transfer a primary residence to a child without reassessment, regardless of whether the child chose to live there or not. In many cases, a child could rent or sell the property and still retain the low tax base.
After Prop 19:
Now, only one child can receive the family home without full reassessment—and only if that child makes it their primary residence within one year of the transfer. Even then, there's a $1M exclusion cap on the assessed value difference, and this benefit is not automatic—it must be claimed through proper filing and timing.
Why This Matters to Your Trust
If your current trust:
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Leaves the home equally to multiple children, or
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Does not specify how Proposition 19 will be handled, or
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Was drafted before February 2021,
…then your children could face a full reassessment of the property tax base, increasing their taxes by tens of thousands annually.
🛑 Common Scenario – Outdated Trust = Property Tax Disaster
Old Language:
“The primary residence shall be divided equally among my children.”
New Reality Under Prop 19:
Only one child can inherit the home and qualify for a property tax exclusion—and only if they move in within 12 months and file the proper claim. Equal division among siblings often forces a sale, resulting in full reassessment and loss of generational tax savings.
✅ Example – How a Trust Revision Preserved the Low Property Tax Base
Case Study:
Linda and Mark had a Laguna Beach home assessed at $1,200,000 with a fair market value of $3,750,000. Their trust left the home equally to their two children. After a Prop 19 Estate Plan Health Check, we revised the trust to:
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Name one child (who wished to live in the home) as sole recipient of the residence
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Eliminate any obligation to “equalize” distributions (so the inheriting child wouldn't be forced to buy out their sibling)
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Add clear language aligning the plan with BOE filing requirements
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Provide for alternative assets (such as brokerage accounts) to go to the other child
Result: The inheriting child retained the low property tax base, saving $28,000 annually. The sibling received other assets of equal value, with no family conflict and no reassessment.
✒️ What's Included in a Prop 19 Trust Revision & Estate Plan Health Check?
Our comprehensive review and revision process includes:
1. Prop 19 Compliance Audit
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Analyze how your current trust handles the primary residence
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Evaluate child eligibility and practical enforcement of Prop 19 rules
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Review tax base and market value differences
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Determine whether property will qualify for reassessment exclusion
2. Custom Trust Language Updates
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Drafting or amending provisions that name a specific child as the residential heir
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Structuring inheritance to avoid “equalization” obligations that trigger reassessment
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Adding "use and occupancy clauses" to ensure qualification for BOE Form-60
3. Reassessment Mitigation Strategy
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Coordination with appraisal professionals for valuation evidence
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Timeline structuring to ensure beneficiary occupancy within 12 months
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Filing assistance with the County Assessor's Office
4. Estate Plan Health Check
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Check for out-of-date POAs, Healthcare Directives, HIPAA authorizations
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Confirm successor trustee and executor selections
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Review funding of trusts (real estate, accounts, entities)
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Identify new planning opportunities (CPRPs, IDGTs, PPLI integration)
💡 Did You Know?
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Only one child can claim the reassessment exclusion per property. There is no splitting or shared use permitted under Prop 19.
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If your trust leaves the home to multiple children without direction, the home is usually sold, and the tax base is reset to market value.
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The BOE-19-P claim must be filed within one year of the parent's death, or the exclusion is lost.
Protect Your Family Home. Secure Your Legacy.
If you own a California residence and wish for your children to benefit from your low property tax base, your trust must be reviewed and potentially revised now. We help ensure:
✔️ Prop 19 compliance
✔️ Strategic inheritance distribution
✔️ No forced sale of the family home
✔️ Peace within the family
Schedule Your Prop 19 Estate Plan Review
📞 Call: (949) 305-8642