Avoiding Capital Gains Tax: A Homeowner's Guide

If you're thinking about transferring your property to a loved one, hold up – there's an important tax consideration you need to know about. Here’s the scoop.

Some long-time homeowners look into adding their children to the deed on their home to streamline things. But here’s what should be considered: if they simply add them to the deed, the kids will likely be hit with a hefty capital gains tax on the property's appreciation when they go to sell the house down the road. And they’ll have to deal with probate if the title isn’t taken correctly.

There's a smarter way to do it! For example, you can put the property in a revocable living trust and name children as the beneficiary, allowing them to inherit the property without the burden of capital gains tax.

So, whether you're planning for the future or just want to protect your assets, make sure you consult with an estate attorney so they can help you plan appropriately. Not sure who to contact? Let me know - I work with several estate attorneys and I would be happy to make an introduction!