Here’s why you shouldn’t simply transfer your house to your kids.
I work with a lot of retirees, and one of the questions that I often get is: “Should I transfer my home to my kids’ names?”
The short answer is probably not. Let's say you purchased a property for $300,000, and it appreciates to $500,000. If you put the house in your kids’ names, they then become responsible for the taxes on the $200,000 of profit. Instead, the best thing you can do is put the house in a living trust, so when you pass away, they will inherit the property with no probate. They will also receive a step-up in cost basis, which allows them to receive the property tax-free.
If you have any questions about the Treasure Coast real estate market, don’t hesitate to reach out to me via phone or email. I look forward to hearing from you.