Legal Question in Real Estate Law in California

parent/child exclusion

I read the following regarding the parent-child exclusion: ''claiming this exclusion may not always be to your benefit. Exclusions include tansfer of a principal residence (meaning the transferor is claiming a homeowners' exemption at the time of the transfer):

My parents were negligent and old and never applied for a homeowners exemption on either of their properties. (I checked their property tax statements)

Facts: my father died and left a home to me in a 'Life Estate'. I plan to file the preliminary change of ownership, quit claim deed, death certificate and the parent child exclusion form in the county where the property is located.

The house is falling apart and hasn't been lived in for 15 years and I believe it's assessed at about $59,000.

He also owned a modest condo in another county which he deeded to me as well and I have already filed the same exact paperwork, (including a parent-child exclusion form).

Are you allowed only one parent-child exclusion on only one property or can I file for the exclusion on both properties? If I cannot, is it better to file the exclusion on the property that is worth the most?

Thank you.


Asked on 6/25/08, 8:55 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: parent/child exclusion

I don't think there is any limitation on the number of parent-to-child transfers that can be exempted from reassessment. To be truthful, I haven't researched this, but on the other hand it has never come up as a possible issue in my practice or my personal affairs.

You are, of course, limited to only one (at a time) primary residence exemption, but that is an entirely different and separate concept.

I would guess that the person writing about forgoing the parent-child exemption had in mind the reality that home prices (and therefore taxable values) are falling, so that in an increasing (but still small) number of instances of inheritance, the heir might be better off to have the county reappraise and reassess the property because it would in fact result in lower taxes.

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Answered on 6/25/08, 9:51 pm


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