W
hen a property owner in California passes away, the county assessor must be notified within 150 days through the "Change in Ownership – Death of Real Property Owner" form. This is separate from transfer documents filed with the recorder's office and is crucial for claiming specific exclusions from reassessment. These exclusions include the interspousal exclusion, parent-to-child exclusion (limited), grandparent-to-grandchild exclusion (even more limited), and cotenants exclusion.

    The interspousal exclusion applies when a surviving spouse inherits an interest in real property, whether outright or through a trust. However, if the spouse is not the sole beneficiary, their exception is reduced to their proportionate interest in the property. For example, if multiple beneficiaries share a residence, they must allocate shared use among themselves.

    The parent-to-child exclusion requires filing an additional form and now only applies if the deceased parent's primary residence was transferred to a child who moves in within one year of death and claims the homeowner's exemption. The grandparent-to-grandchild exclusion is even narrower, requiring that the grandchild's parent be deceased and the spouse either deceased or remarried.

    The cotenant exclusion requires two cotenants owning 100% of the property as tenants in common or joint tenants for a year preceding one cotenant's death, with the surviving cotenant obtaining complete ownership interest. The surviving cotenant must also sign an affidavit affirming continuous residence at the property for the same period.

    Even when no exclusion applies, the Death of Real Property Owner form is required to alert the Assessor of a change in ownership. Consult a qualified attorney for guidance on these matters.