Upcoming impact of the California Proposition 19

Upcoming impact of the California Proposition 19

A new California constitutional amendment, California Proposition 19, replaces the exemption for transfers between parents and children (and grandparents and grandchildren) with a far more limited exemption. It was approved by voters and will add Section 2.1 to Article XIIIA of the California constitution.

For transfers of property between parents and children, or grandparents and grandchildren, occurring on or after February 16, 2021, the exemption will apply only to principal residences that will be used as the principal residence of the transferee and the amount qualifying for the exemption will be limited to the residence’s current assessed value plus $1 million. If the fair market value of the residence exceeds this value then the property will be partially reassessed for the difference.

Individuals who were planning to use the current parent/child, or grandparent/grandchild exclusion should speak to their advisors to determine whether this law will affect their planning.

Source: Assembly Constitutional Amendment No. 11, November 3, 2020, https://voterguide.sos.ca.gov/propositions/19/
 

Newsletter Subscribe Sign Up

Tiles Resources For You Homepage

Resources for you

Insights

Latest financial insights & resources

CIBC Private Wealth experts provide ongoing analysis and insights on what investors should consider for their portfolios and wealth plans during these uncertain times.

Read more

FINANCIAL MARKETS OUTLOOK

Q1 2021 Financial Markets Outlook

In what is bound to be another noteworthy year, our experts address top-of-mind client questions and break down key economic themes likely to drive markets in 2021.

Watch webcast

WEALTH PLANNING

Summarizing the Consolidated Appropriations Act

The Consolidated Appropriations Act is focused on both funding the government through its fiscal year and providing various forms of relief to individuals and businesses.

Read

CTA Primary Start the relationship

Start the relationship

Connect with an advisor