If I buy out my sibling's share of an inherited house, is it reassessed?

The concept is that funds used to equalize a beneficiary's share should come from within the estate or trust rather than from your own pocket after distribution, and that the trustee should be the one making the distribution. Whether a given deal fits that pattern turns on facts an assessor will examine after the fact: what the trust document authorizes, whether the trustee had power to make a non-pro-rata distribution, when title actually changed, where the money came from, and how the deeds and receipts were prepared. Reasonable transactions get treated badly all the time because someone signed a deed in the wrong order or used the wrong source of funds. No one can promise you a particular result, and anyone who does is guessing. What is clear is that this is a planning problem, not a cleanup problem. Once the deeds are recorded and the money has moved, the facts are what they are, and an assessor reviewing them a year later is reading a record you can no longer change. Get the structure reviewed before the buyout happens, and make sure the exclusion claim and the one-year homeowners' exemption filing are part of the plan rather than an afterthought.