When a loved one passes away, handling their affairs can feel overwhelming. However, one task that should not be overlooked is filing a Change in Ownership Statement – Death of Real Property Owner with the county assessor if the decedent owned real property. This filing determines whether the property may be eligible for a parent-child or family transfer property tax exclusion and avoids unintended increases in property taxes.

What Is the Property Tax Reassessment Exclusion?

In California, certain transfers of real property between parents and children or grandparents and grandchildren may qualify for a property tax reassessment exclusion. This means a real property can pass to qualifying family members without being reassessed at its current market value and potentially preserves a much lower property tax base.

This exclusion can result in significant savings, especially if a real property has been owned for many years and has a low assessed value. 

Deadline: File Within One Year of the Date of Death

To secure the lower property tax base, a Claim for Reassessment Exclusion for Transfer Between Parents and Child or other qualifying relationship must be filed within one year of the date of death.

Failing to file within this time frame has consequences:

  • A property may be reassessed at current market value and increase annual property taxes.
  • The exclusion may only apply prospectively. This means it will only prevent increases going forward from the filing date, but you will most likely be liable for higher property taxes that accrued before the claim was filed.

Why Timely Filing Matters

Here’s what happens if the exclusion is filed after one year from the date of death:

  • You may lose retroactive benefits. Even if you qualify for the exclusion, the assessor is not obligated to reverse tax increases applied during the delay.
  • You may owe higher taxes from the date of death until the date your exclusion claim is processed.

Filing on time ensures that the exclusion can be applied retroactively.

What to Do

  1. File the Change in Ownership Statement – Death of Real Property Owner with the county assessor’s office.
  2. Submit the appropriate exclusion application (e.g., Parent-Child Transfer Exclusion) with supporting documentation.
  3. Do this within one year of the decedent’s death to protect your eligibility for full property tax savings.

Final Note
Property tax rules are complex. If you’re unsure whether your family qualifies for a property tax exclusion or need help navigating the process, feel free to reach out to T.S. Wrobel Law Group, PC at (415) 928-4161 or thomas@tswrobel.law for a free consultation.