In a major recent development, efforts to place a repeal of Proposition 19 on the November 2024 ballot in California have fallen short. The Howard Jarvis Taxpayers Association (HJTA) spearheaded a campaign to collect signatures for the "Repeal the Death Tax" initiative. Still, despite their considerable efforts, they were unable to gather the required number of signatures.
Here's a breakdown of what happened:
- The HJTA collected nearly 560,000 signatures for the initiative, which aimed to restore the parent-child transfer exclusion from reassessment for property transfers.
- The initiative needed 874,641 signatures to qualify for the November ballot. The number of collected signatures was well below this figure.
- The repeal effort failed. Proposition 19 remains law, leaving families vulnerable to massive property tax increases when properties transfer from parents to children.
The Financial Effects of Prop 19
Proposition 19, which was passed by voters in 2020, significantly changed property tax rules in California, removing protections that had been in place for decades. One of the key provisions removed was the parent-child transfer exclusion from reassessment, which had allowed families to transfer their homes and limited other properties to their children without triggering a reassessment and subsequent tax increase. Proposition 19 dramatically limited this for transfers of a primary residence and eliminated all reassessment protections for rentals or any properties outside the primary residence.
Protect Your Property from Tax Increases
Despite the efforts to repeal Proposition 19, families must now take proactive steps to protect their properties and minimize tax burdens. Gilfix & La Poll Associates LLP, one of California's premier estate planning law firms, helps families navigate these complex laws and develop strategies to safeguard their assets.
Here's what you need to know:
- Without proper planning, families could face massive property tax increases when properties are transferred from parents to children. We have seen increases of $10s of thousands per year for individual properties.
- Gilfix & La Poll Associates LLP, in Palo Alto, has developed custom strategies to preserve low property taxes for the next generation, with approaches that also optimize for estate and capital gains tax issues.
- Options may be available. Don't wait until it's too late. Contact Gilfix & La Poll Associates LLP today to learn how to protect your family's assets and avoid unnecessary tax burdens under Proposition 19.
Retain Legal Guidance
While the repeal effort may have failed, families still have options to protect their properties and financial futures. By partnering with experienced legal professionals like Gilfix & La Poll Associates LLP, you can navigate the complexities of Proposition 19 and secure peace of mind for you and your loved ones.
For more information and to schedule a consultation, call us at (650) 683-9200 or send an online message. Don't let Proposition 19 catch you off guard – take action today to safeguard your family's legacy.