Los Angeles Mansion Tax Reform: What California Property Owners Need to Know About Measure ULA Changes and Their Estate Planning Impact
Source: CalMatters
Who This Affects: California residents who own high-value real estate, multifamily property investors, estate planning clients managing California-based assets, and families concerned about property transfer taxes eating into their legacy.
What’s Happening Right Now
Los Angeles City Councilmember Nithya Raman has proposed critical changes to the city’s controversial “mansion tax” (Measure ULA) that could reshape how California families transfer real estate wealth. The Los Angeles City Council is scheduled to vote on Tuesday, January 27, 2026, on whether to put this revised measure on the June 2026 ballot.
Understanding Measure ULA: The Current Mansion Tax
Since 2022, Measure ULA has imposed substantial transfer taxes on high-value Los Angeles real estate sales:
Why This Matters for Your Estate Plan
If you’re a California resident managing valuable real estate assets, this tax doesn’t just affect single-family mansions. Despite its nickname, Measure ULA applies equally to apartment buildings, condos, and commercial properties—assets that many families use as wealth-building and legacy-transfer vehicles.
The tax has created a significant obstacle for families looking to:
What Changes Are Being Proposed?
The proposed June 2026 ballot measure would make several key modifications:
The Statewide Implications: Why This Goes Beyond Los Angeles
The Howard Jarvis Taxpayers Association is gathering signatures for a November 2026 statewide ballot measure that would significantly restrict the ability of more than two dozen California cities to charge heightened transfer taxes.
If this statewide measure passes, it could:
How Can California Families Protect Their Real Estate Legacy?
Whether you own a single high-value home or a portfolio of investment properties, understanding these tax implications is essential for effective estate planning:
1. Review Your Property Transfer Strategy
The timing of property transfers can dramatically impact tax liability. Families should evaluate whether transfers should occur before or after potential tax changes take effect.
2. Consider Trust-Based Solutions
Certain trust structures may provide options for managing property transfers while minimizing exposure to transfer taxes. A properly structured revocable living trust or irrevocable trust can offer flexibility.
3. Evaluate Multi-Generational Planning
With a potential 15-year exemption for certain properties, long-term holding strategies may become more favorable for families building generational wealth through real estate.
4. Stay Informed on June and November 2026 Ballot Measures
Both the local Los Angeles measure (June 2026) and the statewide Howard Jarvis measure (November 2026) could fundamentally alter California’s real estate transfer tax landscape.
Questions California Property Owners Are Asking
Q: Will the mansion tax affect my estate plan if I die while owning Los Angeles property?
Yes, potentially. If your estate or trust sells property valued above $5 million in Los Angeles, the transfer tax applies. However, transfers to heirs through inheritance may have different treatment depending on how your estate plan is structured.
Q: How do I know if the proposed changes will help or hurt my family’s situation?
It depends on your specific property type and timeline. Multifamily and commercial property owners may benefit from the 15-year exemption, while single-family mansion owners may see little change.
Q: Should I rush to sell or transfer property before these changes take effect?
Not necessarily. The proposed changes won’t take effect until voters approve them in June 2026, and the current system remains in place until then. Hasty decisions without proper legal and tax guidance can create unintended consequences.
The Opposition Perspective
Not everyone supports the proposed changes. Joe Donlin, director of United to House LA, argues that “Measure ULA is working” and questions why changes would be made “without even an analysis of how much it would cost.”Tenant rights groups and public sector unions remain fierce defenders of the existing tax structure.
What California Families Should Do Now
The complexity of California real estate transfer taxes, combined with evolving ballot measures and legal challenges, makes professional guidance essential. Families managing California-based assets need a comprehensive strategy that addresses:
Protect Your California Real Estate Legacy
At California Probate and Trust, PC, we help California residents navigate the complex intersection of estate planning and real estate transfer taxes. Whether you’re concerned about Measure ULA’s impact on your property holdings or need to restructure your estate plan in light of changing tax laws, our experienced attorneys provide the clarity and protection you need.
Schedule your free estate planning consultation today:
We offer transparent, fixed-fee estate planning packages designed specifically for California residents managing valuable real estate assets. Our compassionate approach ensures you understand every option available to protect your family’s legacy.
Important Dates to Remember
Legal Disclaimer: This article is provided for informational purposes only and does not constitute legal advice. The information contained herein is based on current law and proposed ballot measures as of January 2026, which may change. Real estate transfer taxes, estate planning strategies, and trust administration involve complex legal and tax considerations that vary based on individual circumstances. You should not rely on this information as a substitute for consultation with qualified legal and tax professionals. California Probate and Trust, PC does not guarantee any particular outcome and makes no representations about the accuracy or completeness of information provided. Consult with a licensed attorney regarding your specific situation before making any decisions affecting your estate plan or property transfers.