When a loved one passes away, feeling lost and confused is normal. This can be difficult for family members, but it doesn’t have to be that way. The following are some important steps that need to be done if they owned property in the State of California.
About the assessor’s notification
- The County Assessor must be notified of a property owner’s death by filing a Change in Ownership – Death of a Real Property Owner form, which must be filed within 150 days of the date of death, or if the estate is probated – at the time the inventory and appraisal is filed.
- Failure to notify the Assessor may result in failure-to-file penalties.
- The penalty for failure to file a Change in Ownership Statement upon request by the Assessor is $100 or 10% of the new base year value resulting from the transfer, whichever is greater but cannot exceed $2,500 unless failure to file was willful.
About the inheritance of property
- Property tax savings are available for children inheriting property from their parents through the Parent-Child and Grandparent-Grandchild Transfer Exclusion (Prop.19).
- The following conditions must be met for the exclusion to apply:
-
- The property must be the principal residence of the parent(s) or grandparent(s).
- The property must become the principal residence of the child(ren) or grandchild(ren) within 1 year of the transfer.
- A Parent-Child Transfer Exclusion or Grandparent-Grandchild Transfer claim form must be filed within 3 years of the transfer.
As you can see, there are a few things to consider when it comes time to take action after the death of a property owner in California. By being prepared and knowing what to do, you can guarantee your future and make sure that the property is handled according to your wishes.
If you would like more information or have any questions, please download our Free Quick Guide about the Death of a Property Owner in California. It’s full of helpful advice and tips that will answer your questions and help steer you in the right direction.
