Prop 13 CA house also in trust

[Tammy Wise]

Sorry if this ends up being repost but it doesn't look like my first post stuck...Hello, I am a trustee to a Family Trust where we have a house in the trust here in CA. The property taxes reflect a prop 13 tax. If we were take the house out of the trust to tap into the equity (free and clear) out then put back in trust to buy more buy and holds, would the the property taxes reset to today's market price? The house is worth approx 500k and we put 60k into house to set up to rent it out (parents were terminal so house needed total rehab) Or does someone have any other ideas for this property? The beneficiaries are grandchildren so I am not sure how this plays into the situation. Any advice is appreciated. Tammy