06/11/2026
One issue I’ve been seeing come up frequently for families in California is what happens to the family home after parents pass away.
I recently wrote an article on this topic, “Trust Administration and the Family Home,” and it reminded me how many families are surprised by the financial and property tax consequences that can arise when siblings inherit a home together.
Many people assume the choices are straightforward: sell the property and divide the proceeds, or have one sibling buy out the others. In reality, the analysis is often much more nuanced, particularly here in California where Proposition 19 and property tax reassessment rules can have a significant impact on a family’s long-term finances.
A situation I see often is where one sibling wants to keep and live in the family home while the other sibling(s) would prefer to receive their share of the value. Families are frequently unaware that the way this is structured can dramatically affect property taxes and the preservation of benefits that may have existed for decades.
The good news is that there are often multiple options available. The most important thing is to understand those options before taking action, because decisions made early in the process can have long-lasting financial consequences.
Another reminder from the article is the importance of making sure an estate plan is complete and properly funded. For many families, that means having not only a trust, but also a pour-over will, powers of attorney, healthcare directives, and ensuring that real property is actually transferred into the trust.
As our communities continue to age and more families face these transitions, I thought this would be a helpful topic to share. If you’ve recently gone through a situation involving a family home held in trust, I’d be curious to hear what challenges or surprises you encountered along the way.
