Does the house get reassessed at todays market value after title has been transferred?
According to attorney Marc Weissman of Forest City, Calif., your state’s Proposition 13 prevents increase in real property taxes (beyond the maximum 2% annual increase) until there is a “change in ownership.” Then, the new owners start with a new fair market value for property tax assessment purposes, and they pay the higher freight. But, Weissman also advises, “under most circumstances” California allows parents to transfer real estate to their children, with the children getting to keep the old property tax base. “Parents can sell, give or die and let the child inherit, and the property tax base remains the same.” There is no age requirement, but there is a dollar limitation. You may transfer your home plus other California real estate assessed up to a lifetime maximum of $1 million. But Weissman warns that there other tax issues to consider besides a transfer of the property tax; among them, the federal gift and income taxes. Meanwhile, it also is worth noting for you and other read
