The holidays are coming, and for a lot of Chino and Inland Empire families, that means time around the table with parents, kids and grandkids. It is also when many families start talking about the future, including a big question: what happens to the family home? If your parents bought in Chino, Ontario or Rancho Cucamonga decades ago, their property tax bill is probably based on a value far below today's market. Under California's Proposition 19, passing that home to the next generation does not automatically keep that low tax base. Here is what Inland Empire families should understand before making any decisions.

A Quick Refresher: Why the Tax Base Matters

Under Prop 13, your property tax is based on the assessed value from when you bought, and that value can generally rise by no more than 2% per year. That is why a home purchased in the 1990s can carry a tax bill that is a fraction of what a new buyer next door pays. When a home changes ownership, it is normally reassessed to current market value. Prop 19, which took effect for parent-child transfers on February 16, 2021, changed when families can avoid that reassessment.

The Big Change: The Home Has to Be Lived In

Before Prop 19, parents could pass their home (and up to $1 million in assessed value of other property) to their children without reassessment, whether or not the kids moved in. Today, the rules are much narrower. To keep the parents' tax base on the family home, generally:

• The home must have been the parent's principal residence

• A child receiving it must make it their principal residence within one year of the transfer

• That child must file for the Homeowners' Exemption (or Disabled Veterans' Exemption) within one year

• The claim form (BOE-19-P for parent to child) should be filed with the county assessor, ideally right away

• Only one heir needs to live there, but if they move out, the home is reassessed going forward

Rental properties, vacation homes and other investment real estate no longer get the old $1 million exclusion. Those are generally reassessed to market value when they pass to children.

There Is a Value Cap, Too

Even when a child moves in, the exclusion is limited. According to the California State Board of Equalization, for transfers from February 16, 2025 through February 15, 2027, the excludable amount is the home's taxable value plus $1,044,586. That figure is adjusted every two years. Here is a simple, hypothetical example. Say a parent's home in Chino has a taxable value of $250,000:

• If it is worth $900,000, that is below $1,294,586 ($250,000 + $1,044,586), so the child keeps the $250,000 base

• If it is worth $1,600,000, the amount over the limit ($305,414) is added, for a new taxable value of about $555,414

Either way, that can still be far less than a full reassessment. But it is worth running the numbers before assuming the old tax bill carries over unchanged.

Grandchildren and Family Farms

A transfer from a grandparent to a grandchild can qualify under the same rules, but only if the grandchild's parent (the grandparent's child) has passed away by the date of the transfer. Family farms follow similar rules, though without the requirement that the child live on the property.

The Good News for Parents Who Want to Move

Prop 19 also gave homeowners 55 and older (as well as severely disabled homeowners and victims of certain disasters) a new benefit. They can sell their home and transfer their tax base to a replacement home anywhere in California, up to three times for age or disability claims. The replacement must be purchased or built within two years of selling the original home, and if it costs more, an adjustment is added for the difference. So if Mom and Dad want to downsize to a single-story home in Chino Hills or move closer to grandkids in Eastvale, they may be able to bring their lower tax base with them. That can open up options the family had not considered, like selling the larger home and helping the kids in other ways.

Questions to Talk About as a Family

Every family is different, and there is no one right answer. A few questions can help start the conversation:

• Does one of the children actually want to live in the home long term?

• If several siblings inherit, how would the one living there and the others share costs and equity?

• Would selling, renting or keeping the home make more sense for everyone?

• Are the parents planning to downsize, and could a base-year transfer help?

• Is the home held in a trust, and has the estate plan been reviewed since 2021?

Get the Right Team Involved

Prop 19 deals with property tax, but passing on a home can also affect income taxes, trusts and estate plans. That is why I always recommend talking with an estate planning attorney and a tax professional before transferring or retitling a property. The San Bernardino and Riverside County assessor offices also have Prop 19 information and claim forms on their websites. Where I can help is the real estate side: what the home is worth today, what it might rent for, and what selling, keeping or buying a replacement home could look like for your family.

Let's Plan Ahead Together

If your family is thinking about the future of a home in Chino, Ontario, Chino Hills, Eastvale or anywhere in the Inland Empire, I am happy to put together a free home value report so you have real numbers to work with. Call or text Javier Ramirez at (213) 216-5306 or visit JavierRamirez.com to get started. This post is general information, not legal or tax advice. Rules and figures can change, so please confirm details with a qualified attorney, tax professional or your county assessor. Javier Ramirez, Broker Associate | ehomes | 11760 Central Ave #125, Chino, CA 91710 | DRE #01233369