Proposition 58 For Seniors
One big concern for seniors is the impact of selling a home that is no longer functional or safe to inhabit due to age or medical conditions.
Proposition 58 is designed to safeguard against substantial property tax impacts on certain specific types of transfers among family members.
Contact your legal or tax advisor for further guidance.
What is Proposition 58?
Proposition 58 is a constitutional amendment approved by the voters of California on November 4, 1986 which excludes from reassessment transfers of certain real property between family members.
Which transfers of real property are excluded from reassessment by Proposition 58?
The following transfers of real property are affected by Proposition 58:
Who are considered children under Proposition 58?
Children is defined by any of the following:
What value of the transferred property is considered towards the $1,000,000 exclusion limit?
Can transfers of real property to or from a family partnership be eligible for Proposition 58 exclusion?
No. Transfers of real property must be between eligible parents and children, not legal entities.
Can a transfer of real property between grandparent and grandchild qualify for this exclusion?
On March 26, 1996 a constitutional amendment was approved by the voters (Proposition 193)
This excludes transfers from grandparent to grandchild under the strict condition that both parents of the grandchild are deceased as of the date of transfer or purchase.
What are the time filing requirements of Proposition 58?
What if the Assessor sends me a claim form and I do not file in a timely manner?
The County Assessor will consider non-compliance to filing as a potential change of ownership, which would trigger a reappraisal and a possible increase in ones liability.