Legacy Real Estate Planning.

Most families do not think about their home as a legal and financial asset until a crisis forces them to. And by the time the crisis arrives, many of the best options have already passed.

I have spent over 25 years helping Los Angeles families navigate real estate decisions during life's most complex moments: a parent's passing, a health crisis, a divorce, a trust administration, a senior transition. And one thing I have learned is that the families who plan ahead always have more options, less stress, and better outcomes than the ones who wait.

Legacy real estate planning is not just for the wealthy. It is for every family who owns a home, especially here on the Westside of Los Angeles, where property values are significant and the decisions families make about those properties carry lasting consequences.

This year alone, three major changes have reshaped the landscape for California homeowners and their families. If you own a home in Santa Monica, Beverly Hills, Venice, Marina del Rey, Culver City, Malibu, Pacific Palisades, Brentwood, View Park, Baldwin Hills, Leimert Park, or any of the legacy neighborhoods I serve, here is what you need to know.

The Three Big Changes Every LA Homeowner Should Know About in 2026

1. The Medi-Cal Asset Limit Is Back

Effective January 1, 2026, California reinstated asset limits for seniors (65 and older) and people with disabilities who seek Medi-Cal coverage for long-term care. For individuals, the limit is $130,000 in countable assets. For couples, it is $195,000. A 3-year look-back period now applies to gifts or asset transfers made after that date, which can delay or disqualify eligibility for nursing home or assisted living support.

Why does this matter for your home? For many seniors, the family home is their most significant asset. If a parent needs long-term care and their home is in their name, it may count toward the asset limit. Without proper planning, families can be forced into rushed property decisions at exactly the moment they are least prepared to make them.

The key is planning before care is needed. A thoughtful strategy might involve transferring the home, structuring ownership differently, or understanding the exemption rules before a Medi-Cal application is filed. But none of these options work well when you are already in crisis mode.

2. Proposition 19 and Inherited Property Tax Rules

Proposition 19, which took effect in 2021 and continues to shape inheritance decisions in 2026, fundamentally changed how inherited property is taxed in California. Before Prop 19, children could inherit a parent's home and keep the low Proposition 13 property tax base regardless of what they did with the property. Those days are over.

Under current law, to preserve a parent's property tax base, the heir must meet two conditions: they must make the inherited property their primary residence within one year of the transfer, and the difference between the parent's assessed value and the current market value must fall under approximately $1,044,586 (adjusted for inflation).

For rental properties, vacation homes, or any property that is not the heir's primary residence, the exclusion no longer applies at all. The property is fully reassessed to current market value, which can mean property taxes jumping from a few thousand dollars a year to tens of thousands.

This has real consequences for families in high-value Westside neighborhoods. A family home in Santa Monica purchased in the 1970s might be assessed at $80,000 but worth $2.5 million today. A child who inherits it and keeps it as a rental loses the tax base — and faces a property tax increase that could make holding the property financially unsustainable.

The fix? Plan ahead. Understand what your options are before the property transfers. In some cases, selling the property and using the proceeds for the next chapter is the better financial decision. In others, restructuring ownership or using the primary residence exemption may protect the tax benefit. Either way, the decision should be intentional, not reactive.

3. The 2026 Probate Code Updates

Beyond the changes already covered in my articles on California's probate law changes and trust property guide, several additional 2026 probate code amendments affect planning families should know about.

Nine separate bills amended the California Probate Code this year, covering areas from power of attorney forms to conservatorship accounting, nonprobate transfers of securities, and public guardian duties. The most relevant for real estate planning is AB 565, which introduced virtual representation in trust administration — allowing one beneficiary to represent another in certain situations without court-appointed guardians.

For families managing a trust that owns real estate, AB 565 simplifies the process of notifying beneficiaries, obtaining consent, and moving forward with property decisions. It does not reduce the trustee's fiduciary duty, but it makes the administration process more practical and less expensive.

Why Planning Before Crisis Matters

Here is what I see most often in my practice. A parent has a health event. The family rushes to figure out what to do with the house. The property has been in the family for decades, and nobody wants to be the one to say "sell." Meanwhile, the house needs repairs, the bills are piling up, and the siblings cannot agree on anything.

That is crisis mode. And crisis mode leads to rushed decisions, discounted prices, family conflict, and long-term regret.

The alternative is a proactive conversation — started early, grounded in good information, guided by a strategist who has seen this before and knows how to protect everyone involved.

Here are the questions I encourage every family to consider, regardless of where they are in life:

• Who would make decisions about our home if we could not? Having a clear line of authority — through a trust, a power of attorney, or a documented plan — prevents confusion and conflict.
• Is the property titled correctly? How your home is titled determines what happens when you pass away, whether it goes through probate, and how it can be managed if you become incapacitated.
• What are the carrying costs? Property taxes, insurance, maintenance, HOA fees — these costs matter for anyone considering holding onto a family home. A property that seems affordable now may become a burden under different circumstances.
• Are our children aligned on what we want? Family conversations about the home are uncomfortable, but they are far less painful than the arguments that erupt when nobody knows what Mom or Dad actually wanted.
• Have we consulted the right professionals? An estate planning attorney, a CPA, a real estate strategist, and sometimes an elder law attorney should all be part of the team.

Where the Current Market Fits In

As of mid-2026, the Los Angeles real estate market is in a period of recalibration. Inventory across LA County is up significantly from last year, with active listings climbing by over 47% compared to 2025. Homes are spending more time on the market, and buyers are more selective and price-conscious.

On the Westside, the median sale price sits around $2.2 million, with homes averaging 54 days on market. In Santa Monica, median single-family prices are around $1.8 million to $3.15 million depending on location and condition. In Brentwood, wildfire displacement from Pacific Palisades has pushed demand and prices higher. In Pacific Palisades itself, some price softening has occurred following the January 2025 wildfires.

What this means for legacy planning is simple: the market conditions your property will face when it transfers are not the same as today's conditions. A property sold in a planning-driven decision — with time to prepare, stage, and position it — will almost always outperform a property sold under crisis pressure.

Planning ahead gives you control over timing. And timing, in real estate, is one of the most powerful variables you have.

AI-Forward Strategy in Legacy Planning

One of the tools that sets my approach apart is AI-forward analysis. When I work with families on legacy real estate planning, I use AI to model scenarios that would be impossible to compare manually: the financial impact of selling now versus holding for five years, the tax consequences of different ownership structures, the market trends across multiple Westside neighborhoods, and the comparative outcomes of renovation, sale, or rental strategies.

AI organizes the information so families can see their options with clarity. It surfaces data that most people never know to ask for. But it never replaces the human conversation about what matters most to your family, what your parents hoped for, what values you want to carry forward, and what decision will serve the people you love.

That part is still my job. AI organizes the information. I read the room, protect the people, and lead the strategy.

The Westside LA Factor

The neighborhoods I serve — Santa Monica, Beverly Hills, West Hollywood, Culver City, Venice, Marina del Rey, Playa Vista, Malibu, Pacific Palisades, Brentwood, Bel Air, View Park, Windsor Hills, Baldwin Hills, Leimert Park, Ladera Heights — each have their own market dynamics, regulatory environments, and buyer profiles. A legacy property in Malibu is not the same as one in Leimert Park, and the strategy that serves one family may not serve another.

That is why cookie-cutter advice does not work for legacy planning. Your home, your family, and your goals deserve a custom strategy built on real data, real experience, and real understanding of what matters to you.

When to Start

The best time to start legacy real estate planning was five years ago. The second best time is today.

You do not need to be in a crisis to have the conversation. You do not need to be over 65. You do not need to be wealthy. If you own a home and you care about what happens to it, to your family, and to the people you love, you have every reason to start planning now.

Here is how I can help. I sit down with families, homeowners, fiduciaries, and advisors to map out the full picture: the property, the market, the legal framework, the tax implications, the family dynamics, and the options that serve everyone best. I bring 25+ years of experience, over 1,100 homes sold, AI-forward analysis, and a deep commitment to protecting the people behind every transaction.

And I bring something else, too: the understanding that your home is not just an asset. It is part of your story, your legacy, and your family's future.