Don't Give Away Your Home Too Soon!
Many retired couples often face this common question: how do I pass on the family home? To some, the answer may seem simple. They’ll choose to transfer full ownership of the property to their children. While this may seem like a simple solution, it may come with unexpected consequences.
When property is conveyed to a child prior to the parent’s death, they receive what is called a “carry-over basis.” This means that the house won’t be adjusted to current market value, so if the child wishes to sell the home, they’d have to pay the same amount of capital gains tax that their parents would have incurred.
Thankfully, the estate planning attorneys at our office can help you avoid this common problem! Give us a call at 605-275-5665 to setup your free consultation.