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Sacramento, CA – Senator Kelly Seyarto (R-Murrieta) is proud to announce that SB 974 has been signed into law. The bill clarifies Proposition 19 to protect severely disabled individuals whose inherited homes are held in Special Needs Trusts, helping families retain their Proposition 13 property tax protections.
Special Needs Trusts allow families to plan for the long-term care and financial security of a loved one with a severe disability. However, Proposition 19 did not specifically address these trusts, creating uncertainty over whether families could maintain existing property tax protections when passing down a home.
SB 974 closes that gap by making clear that Special Needs Trusts qualify for these protections under the law. This clarification gives families greater certainty when planning for the future and helps ensure they do not lose applicable property tax protections simply because a home is held in a Special Needs Trust.
“Families caring for a loved one with a severe disability already have a lot to consider when planning for their future,” said Senator Seyarto. “They should not have to worry that doing the responsible thing could result in an unintended tax consequence. SB 974 provides a commonsense clarification that protects families and gives them greater peace of mind.”
SB 974 received bipartisan support and no opposition.