Under Proposition 19, if I inherit my parent’s family home and move into it as my principal residence, must I continue to live in the home to receive the parent-child exclusion? What happens if I move somewhere else?

Our understanding is that at least one eligible transferee must plan to continually live in the property as his or her family home for the property to maintain the exclusion. Once the property is no longer your family home, it will receive a new taxable value. The new taxable value will be the assessed market value of the home on the date you inherited it and adjusted each year accordingly.