Strategies to Avoid Property Tax Reassessment Under Prop 19

The Challenge of Prop 19

Prop 19 dramatically tightened parent-child transfer benefits, which can mean steep property tax increases on homes in Woodland Hills, Encino, and across Los Angeles County. While outright avoidance is limited, careful design can reduce impact, align inheritances among siblings, and keep a cherished residence in the family. Start with high-level prop 19 planning to see which options fit your goals and timeline.

Family Entities and Staged Transfers

One sophisticated approach uses family LLCs or partnerships to hold real estate, then transfers minority interests over time subject to California’s complex change-in-ownership rules. Done correctly, this can coordinate gifting, discounts, and succession—while keeping management centralized—though it requires close legal guidance and impeccable records.

Trust Planning, Occupancy, and Equalization

If a child can make the inherited residence their primary home, the limited exclusion may still apply—paired with equalization strategies so other heirs receive cash or different assets. Specialized irrevocable trust planning can coordinate distributions, but must be weighed against basis, capital gains, and timing. Many families review options within advanced estate planning to balance property tax outcomes with overall wealth transfer.

Important Caveats

There is no universal workaround. Some paths may increase income taxes or complicate future sales; others may trigger reassessment if executed incorrectly. Laws and assessor practices evolve—your specific facts are everything. The Estate Planning & Elder Law Firm will model scenarios for Los Angeles and Ventura County properties so you can choose a practical, legal path forward.