Written by Miguel Palacios<\/p>\n
Within the state of California, gift and inheritance tax have long been voted against, meaning that people could leave funds and property to their relatives without fear that the state will impose such a hefty tax that their heir will not be able to afford to keep the gift or inheritance.\u00a0<\/span><\/p>\n Californians have also been opposed to raising property taxes, which effectively translate into death taxes. In 1978, Proposition 13 passed, which restricted the raising of property taxes by more than 2% per year until a change in ownership. The problem with this was that if someone died and left their home to their child, that constituted a change in ownership, and many people who inherited property from a deceased parent found themselves unable to afford the large, newly assessed property tax on the home, forcing them to sell it.<\/span><\/p>\n Proposition 58 came to be in 1986 and was a direct response to this problem. This proposition made it so that the transfer of these properties from a deceased parent to a child did not constitute a change in ownership, and the original tax restriction remained in place. This proposition passed with more than 75% of state voter approval. Proposition 193 was formed a decade later, to extend the benefits of prop 58 to grandparents and grandchildren.<\/span><\/p>\n Unfortunately, Democrat state legislators were not happy with the affordable outcome, because in the November 2020 election, they were able to trick voters with Proposition 19, which ultimately limited the number of properties that could be transferred to heirs. Under Prop 19, the heirs would no longer qualify for the tax restriction if they were not going to move into the home and keep it as their principal residence.<\/span><\/p>\n Prior to Proposition 19, California residents were able to inherit the financial security their parents and grandparents left them. Due to the greed of state legislators in California, that is no longer possible. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":" Written by Miguel Palacios Within the state of California, gift and inheritance tax have long been voted against, meaning that people could leave funds and property to their relatives without fear that the state will impose such a hefty tax that their heir will not be able to afford to keep the gift or inheritance.\u00a0…<\/p>\n","protected":false},"author":3,"featured_media":6033,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-6029","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-politics"],"yoast_head":"\n