Orange County Props 58 and 193

Have you heard of these California propositions for your real estate? Not many people have, but continuing our senior week theme here at CostaMesaRealEstate.com we will look at how seniors can transfer properties to their children and grandchildren without tax reassessment.

Seniors can transfer their real estate to children or grandchildren under props 58 or 193 in Costa Mesa real estate.

They are constitutional initiatives passed by California voters which provide property tax relief by preventing reassessment when property transfers to a child (Proposition 58) or grandchild (proposition 193).

Under Prop 58 a parent or child files a claim after acquiring a property. The claim for the Costa Mesa real estate property simply needs to be approved by the assessor, and no reassessment will be applied. Under Prop 193, the grandchild needs to file a claim and have the OC Assessor approve it.

• Any child born of the parnet
• Any stepchild of the parent while that stepparent is still in an existing relationship
• Any son-in-law or daughter-n-law of the parents so long as the relationship of marriage still exists
• Any adopted child who was adopted prior to the age of 18
• Requirements and Elgibility

• Under Prop 193 the same relationship requirements apply to grandchildren and grandchildren-n-law. The parents of the grandchildren who would qualify for a Prop 58 exclusion from the grandparents must be deceased.

• Be sure to contact the OC Assessor for elgibility
• $1,000,000 of the seller or decedent other property is also excluded.
• There is no value limit for excluding the seller’s or decedent’s principle residence from reassessment.

 

Q: I just inherited the old family home, but I don’t really want to move into it. Can I use the Prop 58 exclusion and NOT make it my principle residence?

A: Yes!

Q: Is there any limit to the amount of land that can be excluded?

A: No more than ten acres can be excluded.

Q: Can a transfer to a legal entity (corporation, partnership, etc.) be excluded by Prop 58 or 193?

A: No

Q: My sisters and I recent inherited several properties from our parents. Which one is entitled to the exclusion?

A: You have to decide that for yourselves. Whoever applies for the exclusion first in a timely manner will probably get the exclusion.

Got any more questions involving Costa mesa real estate? Feel free to drop us a line below, call us at (714) 743-9882 or e-mail at [email protected]