Ways to Save on your Taxes

Grandparent/Grandchild Transfer Exclusion

This law (Revenue and Taxation Code 63.1) excludes transfers of real property between grandparents and grandchildren from reappraisal under certain circumstances. It only applies to transfers that have occurred since March 27, 1996. As introduced, the law contains the following provisions:

• It applies to qualifying transfers in only one direction: from grandparents to grandchildren. The parents of the grandchildren must be deceased or, in the case of in-laws, be divorced or remarried. However, for transfers that occur on or after Jan 1, 2006, a stepparent to the grandchild need not be deceased in meeting the condition that "the parents of the grandchildren must be deceased".
• People who previously received the Parent/Child Exclusion when transferring a principal residence cannot subsequently receive another principal residence exclusion using the Grandparent/Grandchild Exclusion.

The following types of property may be excluded:

• A principal residence
• $1,000,000 of other real property

In order to qualify for the exclusion, the transferor(s) and the transferee(s) must supply this office with specific information in the form of an application. The application must be filed:

• Within three years after the date of the transfer or purchase, or within three years prior to the transfer of the property to a third party, whichever is earlier, or
• Within six months after the mailing date of a Notice of Supplemental Assessment or a Notice of Escaped Assessment pertaining to the property.

If you are interested in applying for this exclusion, please download the appropriate claim form below:

• Claim for Reassessment Exclusion for Transfer from Grandparent to Grandchild. (PDF: 157 kB)

For more information, or for assistance completing and submitting the form, please visit our offices, write us, or contact us by telephone or email.