Don’t Forget: Property Taxes Will Rise After a Loved One Passes Away

By Jennifer Sawday, Partner, TLD Law

When a loved one passes away, families are often overwhelmed with emotional, financial, and logistical challenges. One area that is often overlooked during this time is property taxes. At TLD Law, we frequently remind our clients that property taxes will increase when ownership of a property changes after death. Unfortunately, despite our repeated conversations, this can still come as a surprise when the bill arrives—often a year or more later.

Why Property Taxes Go Up

In California, all county assessors reassess property taxes after an owner’s death. To trigger this process, we submit a required county assessor form commonly referred to as a “Death of Property Owner” form on behalf of our clients. However, due to significant backlogs at the assessor’s offices (the backlog is more pronounced in Los Angeles County) it typically takes a year or more before the reassessment is processed.

By the time the county issues the new tax bill, the property has often already been sold, and the family has moved forward with settling the estate. That’s when the reassessment notice arrives—and too often, families are caught off guard.

The Common Misunderstanding

Many clients don’t remember that we discussed this potential increase in property taxes. In reality, we talk about it several times:

• At the very first meeting after a loved one passes

• When the Death of Property Owner form is signed

• During the property sale process

• And again, in writing, with a formal notice explaining the likelihood of increased taxes

Despite these reminders, the delayed timing of the bill makes it feel like new information. Families are understandably frustrated, but this is a predictable part of the process.

Planning Ahead for Reassessments

The key takeaway is that families must set aside reserves to cover this expense. Because reassessment is inevitable in most cases (with only rare exceptions), it is wise to plan for higher property taxes and avoid financial surprises later on.

At TLD Law, we take a proactive approach. We remind clients multiple times about this issue, knowing that in the midst of grief and administration, these details can be easily forgotten. While we sometimes joke about asking clients to hold up a sign saying “Property Taxes Will Go Up,” the point is serious: awareness and preparation are essential.

Protecting Your Family Through Trust Planning

Although there are limited exceptions, the most reliable way to minimize surprises and protect your family is through careful estate planning. Establishing and properly funding a trust remains one of the best ways to manage these transitions smoothly.

At TLD Law, our experienced trust and estate attorneys guide families through these complex issues with compassion and clarity. We understand the practical realities our clients face, and we work to make sure you are prepared for what lies ahead.