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Property taxes. Grandchildren defined.

Proposition 193 excludes from reassessment transfers of real property between parents and eligible grandchildren. Though a living trust is not required, your living trust attorney can advise on the application of the law and apply for its benefits.

An eligible “grandchild” for purposes of Proposition 193 is any child of the parents who qualifies as a child of the grandparents as of the date of transfer.

Test your knowledge. The following is from the California State Board of Equalization. They make the rules.

  1. Are my grandchildren eligible transferees of my property for purposes of Proposition 193 if my daughter passed away and she was divorced from her husband (my ex-son-in-law) who is still living?

Yes. Your daughter’s divorce terminated the relationship between you and your son-in-law. Since your ex-son-in-law is not considered your child for purposes of this exclusion, your grandchildren are eligible transferees of your property.

  1. 2. Are my grandchildren eligible transferees of my property for purposes of Proposition 193 if my daughter passed away and her husband (grandchildren’s father) has not remarried?

No. Your son-in-law is still deemed to be a “child” of yours, until he remarries, thus disqualifying your grandchildren as eligible transferees.

  1. I have raised my two stepchildren alone since their mother, my wife, died ten years ago. Now that the children are grown adults, their grandparents wish to gift a piece of bare land to them. Can this transfer be sheltered from reappraisal under Proposition 193?

Yes, assuming the other conditions are met and a proper claim is filed. For transfers occurring on or after January 1, 2006, it is not necessary that the son-in-law or daughter-in-law who is stepparent to the grandchild be deceased in order for the grandchild to be eligible transferees.

  1. I want to give my second home to my grandson, but his father, my son, is still alive. Can my son file a disclaimer so that my grandson is eligible for the grandparent-grandchild exclusion?

No. Even though a disclaimer means the person filing the disclaimer is treated as predeceased, this does not make the person dead as required by the California Constitution.

 

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