(KION) - Proposition 19 passed by a slim margin last November. It was appealing for some because it allowed seniors to transfer their home's assessed value to another home anywhere in the state. But another part of the bill could prove to be detrimental to family properties.
"There's so many things in the proposition, there's so many questions. The assessors in the state are
scratching their heads," says Monterey County Assessor Steve Vagnini.
Beginning February 16th, Proposition 19 allows the transfer of home owners to their children and grandchildren. However, the reassessment exemption can only be for the primary residence and can only transfer the value up to one million dollars. Additionally, the children will be required to live in the house in order to get the exemption.
"How will we prove that the child lives in the house?," says Vagnini.
The Monterey County Assessor says, theoretically, there will be a lot of revenue generated because of the assessments that would have been excluded previously. But families who can't afford those taxes will be forced to sell.
"This is going to be a momentous change for so many individuals. They are going to lose their family property tax bases that maybe they were relying on," says Laura Croft with Timeless Estate Planning.
Estate planner Laura Croft says attorneys around the state… are seeing a
rush of families seeking advice on what to do… but not every case is the
"There's a lot of factors that go into analysis of what you should do -- should you transfer it now, should you wait? What that looks like… and the bottom line is we don't have very much time to figure it out," says Croft.
Croft says it's not too late, but time is ticking because February 16th is right around the corner.