The most expensive way to avoid probate

11 May 2026 · 1 min

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Adding your child's name to your house deed while alive to avoid probate backfires. They inherit your original tax basis instead of getting a step-up at death, creating a huge capital gains tax bill when they sell. Keep ownership until you die and they'll owe almost nothing.

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Adding your kid to your house deed is the most expensive way to avoid probate. When your child inherits the house, the IRS resets the tax basis to whatever it's worth that day. Then they sell it, they pay almost nothing in capital gains tax. But if you put their name on the deed while you're alive, that is a gift and they do not get the step-up in tax basis. Your kid then takes your tax basis in the home and depending on how much it's improved in value since you bought it, You just handed your child a big old tax problem on purpose. That's not a shortcut. That is the most expensive favor you'll ever do for them. Learn how to avoid this in my free workshop on the 21st. Go to the link in my bio and register for it.