I don’t have nearly as much of a problem with heirs* as I do with people who are earning incomes from these properties. It’s the subsidizing of (often) very wealthy “investors” that I have a problem with. I don’t think anybody should be taxed out of their primary residence, whether they are old or young.
*If the heirs want to retain the original cost basis for property tax assessments, then they should NOT be able to “step up” the cost basis for capital gains upon sale. They should have to choose between one or the other. Also, the Prop 13 protection would ONLY apply if they live in the homes as a primary residence. If they rent the properties out, then they would be assessed at market value.
