Last week I went to a presentation about estate planning given by Ameriprise. One of the presenters was Amir Rang, Esq. There were several topics covered, but one that is often a question for parents: Should I put my children’s names on my house?
Answer: NO. NO. Did I say NO?
Okay, so now I know you’re asking why.
- Their names are on the house! They could force you to sell.
- They could also encumber your home with debt, use your house as collateral for a major purchase - making your life miserable.
- Stepped-up basis. You may think you’re saving your heirs a step or saving them from probate, but this is not the way to do it. You’re actually taking away their one tool to avoid an extremely high tax bill – capital gains.
- One last thing: Because you’re giving them ownership rights that means you just gave them a gift. Any gift of over $12,000 has to be reported to the IRS!
So don’t do it!
The best way to leave your assets to your heirs is to have a professionally prepared Trust. Amir is an great choice to assist you in achieving that. His credentials are excellent and he’s a trustworthy professional.
Got a San Mateo County real estate question? Call me at 650.888.9268 or send me an email Vicki [at] CallVicki.com. You can also subscribe to my blog feed by clicking here.
All the best,
Vicki Moore
Popularity: 66% [?]
