Don’t let your parents do it

17 Oct 2023 · 1 min

Watch on YouTube

1:01

In this short YouTube monologue, the narrator warns adult children not to let their parents transfer a house to them by adding them to the deed. He explains that doing so can trigger a large capital‑gains tax when the child later sells the property and can also cause probate complications. Instead, he recommends that parents place the home in a revocable living trust, which allows the child to inherit the property with a stepped‑up basis (eliminating capital‑gains tax) and avoids probate. The video concludes with a promotional plug for Jerry Taylor Law, directing viewers to the attorney’s Linktree and newsletter for further assistance.

Chapters

Don't let your parents give you their house. No, I'm not crazy. Here's why. Here's your dad. Oh, wonderful child of mine. I'm getting older. To make things easy when we're gone, I'm going to put you on the deed to the house. That way, when your mom and I have left the planet, you'll be the owner of the house. Here's you. Dad, don't give me the house. Here's your dad. What? Here's you. I'm serious. When you and mom bought this house, you paid $250,000 for it. "now it's worth $1 million, which means when I try to sell it, I'll have to pay capital gains tax on $750,000." Here's your dad again. "What the hell?" Here's you. "Exactly. Here's what you do. Leave it to me in a revocable trust. Then when I inherit the home, I'll pay $0 in capital gains tax and it will all pass outside of probate court." And then your dad says, "When did you get to be so smart?" When I started listening to Jerry Taylor Law— and if you go to his Linktree, you can work with him and get his newsletter.