Proposition 19 and Your Tax Base
California's Proposition 19 changed two things that can matter to reverse mortgage borrowers. First, homeowners who are 55 or older (or severely disabled, or wildfire/disaster victims) can transfer their low property tax base to a replacement primary residence anywhere in the state, which pairs well with downsizing. Second, Prop 19 narrowed the parent-to-child exclusion, so heirs who inherit the home generally keep the low tax base only if they make it their own primary residence within the required time. These rules affect estate planning around any home, with or without a reverse mortgage.
California's Property Tax Postponement Program
California offers a Property Tax Postponement (PTP) program that lets qualifying homeowners — generally those who are 62 or older (or blind or disabled) with limited household income and sufficient equity — defer payment of property taxes on their primary residence. Program rules and eligibility limits are set by the state and can change year to year, and there can be interactions with a reverse mortgage, so confirm details with the California State Controller's Office and your advisor before relying on it.
