This is a YouTube video titled "Kids Names On House Title? #doctor #personalfinance #investing #realestate #money" containing a single-speaker discussion from July 20, 2024, explaining why parents should avoid putting their children's names on the title of their home due to tax implications related to the step-up in basis at death.
Parents stop doing this. This is a bad idea to put your kid's name on the title of your home. Do not do that, okay? You think you're, like, making things easier when you pass, and maybe you are, because if you put your kid's name on there, it won't go through probate, right? It just becomes theirs when you die. It's now theirs. But what did you give up to get that? You gave up the step up in basis of death. So let's say you bought this house for $100,000. It's now worth $1 million. If you just died and left this house to your kid in your will, it would be treated as though they bought the house for $1 million. So now they can sell it right after they inherit it for $1 million. And that's all totally tax free to them, putting their name on the title. Dum dum dum dum dum. Don't do that.
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