In the past, foster children did not qualify for a change in ownership exclusion on real estate acquired from a foster parent. The rules now include foster children in the class of “children” eligible for the exclusion.
Amended by AB 402:
Revenue and Taxation Code §63.1
Effective January 1, 2008, a change of ownership triggering reassessment does not include the transfer of a principal residence from a foster child to their biological parents if the foster child received an interest in the residence from a foster parent.
The definition of “children” eligible for the change of ownership exclusion has been expanded to include any foster child of a state licensed foster parent if, due to a legal barrier, the child was not adopted prior to aging out of the foster care system. The relationship between a foster parent and child exists until death, and that relationship exists for transfers that occur on or before the date of death.
Any claim filed with the assessor for a change in ownership exclusion for a transfer between a foster parent and foster child must include a certified statement from the appropriate court agency showing the foster child was not adopted due to a legal barrier, and a copy of the court decision expressing the status of the foster child as a foster child.