Nick PerryFounder and CEO of 7 Figure Cartel

Why Serious Investors Put Their Properties in a Trust

18 Feb 2026 · 0 min

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In this brief advisory monologue, the speaker warns against directly transferring a primary residence into a child’s name, explaining that doing so would trigger substantial capital gains taxes—potentially 25% to 40% of the property's appreciated value—when the child eventually sells. Instead, the speaker recommends placing the home into a living trust with the children named as beneficiaries. Upon the owner’s death, the trust allows the heirs to receive the property with a stepped‑up cost basis, effectively eliminating capital gains tax liability on the appreciation that occurred during the original owner’s lifetime.

Never, ever, ever transfer your home into your kid's name. You're messing up their future. Because when you've owned your property for a long time, the property value has appreciated a lot. So if you give it to your kids in your will, they have to pay all the capital gains taxes on it, which is around 25 to 40% of that property's value. So instead, just put it into a living trust and name your kids as the beneficiary. Now, when you're gone, they'll get the property tax free through the trust in a special code called a stepped up in cost basis.