Trusts and estates in Fontana
Industrial parcels held by a Fontana family for decades are almost never a principal residence, which decides the reassessment question before it is asked.
What this looks like in Fontana
The parent-to-child exclusion from reassessment requires the property to have been the parent’s principal residence and to become the child’s. An industrial parcel, a yard, or a leased warehouse does not qualify, so it is generally reassessed at market value on transfer.
Where several children inherit one parcel together, the way title is taken decides both the property tax outcome and what happens when one of them wants out — which, with a single indivisible industrial property, is the situation that most often ends up in a forced sale.
What gets examined
- Reassessment modelled at market value, since the exclusion will not apply
- How co-owners take title, and whether an entity is the better holding structure
- Whether the property generates enough income to carry a reassessed tax bill
Common questions
- Will my family keep the low property tax base on our Fontana warehouse when it passes to us?
- Almost certainly not. Under current California law, the exclusion from reassessment applies only to a principal residence that the child then occupies as their own. Commercial and industrial property is reassessed at current market value on transfer, so the annual carrying cost should be modelled before the transfer rather than discovered on the next bill.
- Do you work with warehouse and industrial property owners in Fontana?
- Yes. Industrial and distribution property raises particular questions around cost recovery, tenant improvements, and how the operating business and the real property should be held. Consultations are held at the Riverside office, a short drive from Fontana.
Start with a conversation
Tell us what you are working with and we will tell you whether it is something we handle.