Grandparent to Grandchild Transfer Exclusion
The grandparent to grandchild exclusion is an extension of the parent-child exclusion to be used in situations where the parent of the grandchild has predeceased the grandparent. This exclusion only applies to transfers from grandparent to grandchild (one direction).
Proposition 19 (Current Law)
Effective February 16, 2021
- Transfers between grandparent(s) and grandchild(ren) - both ways
- A family home that is the principal residence of transferor and transferee
- Must file for homeowner's exemption within 1 year of transfer
- A family farm and must continue as a family farm of the transferee
- Value limit of current taxable value plus $1,000,000 (as annually adjusted)
March 27, 1996 to February 15, 2021
The following types of real property transfers may be excluded:
- Transfers of primary residences (no limit)
- Transfers of the first $1 million of real property other than the primary residences.
The exclusion applies only to real property transfers between eligible grandparent and grandchildren, not legal entities. In order to qualify, all the parents of the grandchild must be deceased as of the date of purchase or transfer. Parents are those persons who qualify under section 63.1 as the children of grandparents. However, for transfers that occur on or after January 1, 2006, a son-in-law or daughter-in-law of the grandparent that is a stepparent to the grandchild need not be deceased in the meeting the condition that "all of the parents" of the grandchild must be deceased. The grandparent to grandchild exclusion does not apply when a parent disclaims their interest.
Current Law vs. Proposition 19
Note: The information presented is intended to provide general and summary information about Proposition 19. It is not intended to be a legal interpretation or official guidance or relied upon for any purpose, but is instead a presentation of summary information. If there is a conflict between the information presented and the text of the proposition or its implementation, the text of the proposition or legal interpretation will prevail. It is highly encouraged that you consult an attorney for advice specific to your situation.
Proposition 193 (Prior Law)
To get relief retroactive to the date of transfer, a completed claim must be filed with the Assessor's office by the earliest of the following:
- Within three years of the transfer
- Prior to transferring to a third party
If a notice of supplemental or escaped assessment is mailed after either of these periods have passed, then the transferee has an additional six months from the date of the notice to file a claim.
If the transferee has not transferred the property to a third party, applications may still be filed at any time after the three-year deadline; however, those filed after three years will only become effective for the lien date in the assessment year in which they are filed and will not be retroactive to the date of transfer.