Laws, Regulations & Annotations
Property Taxes Law Guide – Revision 2015
Property Tax Annotations
625.0000 PARENT-CHILD TRANSFER
625.0142 One Million Dollar Exclusion. Husband and wife create a revocable living trust that became irrevocable at husband's death and was subsequently divided into four separate successor trusts. The original trust instrument provides that the wife, as the surviving spouse, becomes the present beneficiary of the successor trusts and that the four children of the husband and wife have remainder interests in the property held by the trusts. Leases of real property held by the trusts for a term of 35 years or longer result in changes in ownership of the property under Revenue and Taxation Code section 61(c)(1). However, the lease agreements constitute transfers from the wife, as sole present beneficiary of the trusts, to her children that are eligible for the exclusion from change in ownership pursuant to Revenue and Taxation Code section 63.1, provided all qualifying requirements are met. Additionally, because the lease agreements constitute transfers only from the wife, and not from the husband and wife jointly under the terms of the trust instrument, only the one million dollar limitation for all other real property attributable to the wife is available for those transfers. C 6/25/2004.