See Proposition 19
Typically, transfers of real property are considered changes in ownership that require a reassessment to current market value. In some transfers between family members, however, statutory exclusions may apply.
Husband / Wife (Inter-Spousal) Change in Ownership Exclusion
Any transfer of property between spouses during marriage (or transfers between former spouses after marriage in connection with a property settlement agreement or dissolution) is excluded from the change in ownership reassessment requirement of Proposition 13. In other words, transfers of property between husband and wife should not trigger reassessments. No claim form is required; however, additional documentation may be necessary. (Reference: Revenue and Taxation Code (RTC) section 63.)
Registered Domestic Partners Change in Ownership Exclusion
Beginning January 1, 2006 transfers of real property between registered domestic partners (as defined in Section 297 of the Family Code) under Revenue and Taxation Code 62(p) are excluded from being considered a change in ownership. This includes transfers in and out of a trust for the benefit of a partner, the addition of a partner on a deed, transfers upon the death of a partner and transfer pursuant to a settlement agreement or court order upon termination of the domestic partnership.
Cotenancy Change in Ownership Exclusion
Transfers of a cotenancy interest from one cotenant to another that occur due to the death of one cotenant and after January 1, 2013 may be excluded from reassessment if certain conditions are met. A claim form is required, and the transferee must sign an affidavit affirming residency. (Reference Revenue and Taxation Code 62.3)