CA property tax effect of adding names to title then quitclaiming

If a daughter adds parents names to her home will property taxes be increased.
If at a later date the daughter quitclaims her interest to parents will property taxes be effected.

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is this a question? I think you are incorrect, with respect to such family members.
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http://www.leginfo.ca.gov/.const/.article_13A
(h) (1) For purposes of subdivision (a), the terms "purchased" and "change in ownership" do not include the purchase or transfer of the principal residence of the transferor in the case of a purchase or transfer between parents and their children, as defined by the Legislature, and the purchase or transfer of the first one million dollars ($1,000,000) of the full cash value of all other real property between parents and their children, as defined by the Legislature. This subdivision shall apply to both voluntary transfers and transfers resulting from a court order or judicial decree.
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I have very little understanding of the opportunities or limitations that might be posed by this section -- preserve Prop 13 benefits? reduce estate tax? -- but let me start with a definition question, namely:
Interpretation of "parents and their children"?
As a sample case, 2 parents (married to each other), 4 children: 3 are natural children of the father, 1 of the mother, by previous marriages (none of them are children of both). Lived many years as stable family, but no adoptions -- and all children are now grown and living elsewhere than the (hugely appreciated) family home.
And to jump further ahead, suppose one of these parents has died, leaving principal residence to surviving spouse. Is there still a "parents and their children" complex here?
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I believe that is the language that prop 58 added in 2004.

"...as defined by the Legislature..."
What is meant by child under Proposition 58? Any child born of the parent; or Any stepchild or stepchilds spouse while the relationship of stepparent and stepchild exists; or Any son/daughter-in-law of the parent; or Any child statutorily adopted before the age of 18.
Also the "first $1,000,000 in value" refers to the prop 13 value (also called the factored base year value), which has nothing to do with the current market value. For example the base year value on my home is under $200,000 but the market value is about $1.5 million.
An interpretation by San Mateo County can be found at:
http://www.co.sanmateo.ca.us/vgn/images/portal/cit_609/87377865prop_58_19 3.pdf
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When you sell or transfer property in California there are questions on the application to record title which address retention of Prop 13 values. Who ever files (you, your attorney or the title company) needs to check the appropriate boxes
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In article
snipped-for-privacy@gmail.com wrote:

Sounds like an attempt to transfer ownership without triggering loss of Prop 13 benefits . . . ?????
(Although the transfer is in the opposite direction to what one might expect to be the more common case of interest, that is, parents to children.)
I'll watch with interest the responses to this query. Does this "add names, then quitclaim" technique also provide a way to play estate tax reduction games?
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In article
snipped-for-privacy@gmail.com wrote:

I would not attempt that without consulting a CA Real Estate tax lawyer first.
(Probably transferring a property from daughter to parent will result in a federal gift tax requardless of how it is done, but that is not the question you asked.)
California has several voter approved propositions governing property transfers and taxes. Prop 13 is the best known, but there are several others as well (prop 60 and 90 which probably don't apply here) and props 58 and 193 which deal with transfers between parents and children and grandparents and grand children respectively.
Prop 58 probably fits your situation and may allow a transfer without triggering an reassessment or tax increase if all parties (and the property) are qualified under prop 58 and the transfer is done properly.
Like I said, I would not try to do this without legal help.
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-Ernie-

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Prop 58 issue: Generally no. (See the other replies; they were more in depth)
GIFT TAX ISSUE: Yes - and possibly an estate tax issue when they die and as the beneficiary, you get it back.
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snipped-for-privacy@gmail.com wrote:

Depends on the value of her home and if she's living in it at the time. Assuming it qualifies, CA property tax will not be increased AS LONG AS a request for exemption is filed within three years of the date of the transaction. If it's not filed the exemption is lost.

Same as above.
Stu
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