Tax implications of adding daughters name on home deed

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  • #3140
    shannon50
    Participant

    We are in our 70’s and want our home to go to one of our children. This property has increased to about 2 million. It will be impossible for them to buy each other out. We have been giving one child lots of money over the years. Is it possible to add our daughter to the deed without tax implications. We plan on staying on the property as long as possible. We have other assets for other children.

    Shannon

    #3145
    kaneohe
    Participant

    https://www.google.com/search?client=safari&rls=en&q=tax+implications+of+adding+person+to+deed&ie=UTF-8&oe=UTF-8

    Here are some articles about this subject. Note that at least one of them is fairly old so the numbers have changed
    (but not the basic ideas).

    One thing that didn’t seem to be discussed: if you gift part of the property, the basis on their share of the property is the same as yours, presumably much lower than cursrent value? If they inherited it , it would be at the market value at that time so they could sell w/o paying much taxes.
    However, if you gift it to them now, their share would have a (much?) lower basis and they would pay more taxes when selling.

    There is also a liability risk that if the child got in financial trouble, the creditor could come after the house.

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