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Property taxes – broad definition of children.

Proposition 58 excludes from reassessment transfers of real property between parents and eligible children in San Diego county and in California. “Child” is broadly defined. Property taxes can be kept lower for one’s “family.” It has nothing to do with whether the owner has a living trust, a will, or powers of attorney.

A “child” is any child born of the parents, but surprisingly also includes:

  1. Any stepchild while the relationship of stepparent and stepchild exists.
  2. Any son-in-law or daughter-in-law of the parents.
  3. Any adopted child who was adopted before the age of 18.
  4. Spouses of eligible children are also eligible until divorce, or if terminated by death, until the remarriage of the surviving spouse, stepparent, or parent-in-law.

 

Under #1, divorce or death of the stepparent severs the relationship and the exclusion benefit is lost.

Under #4, if a married child and the spouse of the child divorce, the exclusion is lost for the latter. But if the married child dies, the spouse retains the benefit unless and until a remarriage.

 

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