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Everyone's situation is going to be different - esp in regards to family dynamics.
Your plan kinda sounds good, but what would happen if you and your spouse died at the same time? Back to probate.
And putting a child on title to your real property? That's a can of worms. Are they married? Cuz a divorce later leaves the house open for grabs in the settlement. Or what if they were sued?
I love my kids fiercely, but I protect myself first while still ensuring their legacy with my estate with a properly set up trust in CA.
He is not married at the moment, he's 28. So we'd need to put him on the deed before marriage I suppose. Good point.
At any marriage, we'd need to re-assess our plans of course. Now it's just speculation except our property and home which we've only owned 2 yrs. Per the County, it's just bare land (though it shows a home from 1910). We only pay 80K in property taxes and were never going to record this home on the records otherwise. It's off grid so totally self sufficient.
If you add a child to your deed before they actually inherit it the original cost basis stays and follows them ...if the house appreciated and they want to eventually sell it then they get your cost and will owe taxes if applicable.....if one inherits the house they get the value at time of death as their cost not your cost .
Please , people don’t do your own planning ,see a pro before you make big costly mistakes
If you add a child to your deed before they actually inherit it the original cost basis stays and follows them ...if the house appreciated and they want to eventually sell it then they get your cost and will owe taxes if applicable.....if one inherits the house they get the value at time of death as their cost not your cost .
Please , people don’t do your own planning ,see a pro before you make big costly mistakes
We did see a financial planner. He said our son will likely pay more but not much more. Yet we are to check in as we age. We only bought the property for 75k. People are not wanting to live here, high crime and the town is totally off the grid. Cops only come in a swat team form when called about any crime.
I hope he did not say to do that.. that can be a huge tax mistake
Alright maybe we need to see a second financial planner about the house. Thank you
We are planning to build a garage too. And a natural swimming pool raising trout for dog food. We have endless water from 2 springs so will be going to hydro power eventually. Make it a small farm homestead....really nice without adding value to an appraisal. Maybe even build a second small home (illegal) across the street on the land where there is one spring located. It would cost more for the building permits than to build the house otherwise. By then we'd have a saw mill so wouldn't need to buy wood to build
Only good thing about this town is the Fiber Optic internet & landlines which is highly unusual. Obtained via a grant.
You mean the one where certain people running for President want to transfer the debt from the people that incurred it, to the people that will pay it? (Tax payers)
There's no such thing as "free", somebody's got to pay for it.
I wasn't necessarily advocating student debt forgiveness. I was merely pointing out that because of it, and many other factors, many younger adult offspring today cannot cover their parents' medical and other living expenses as you suggested. Maybe middle-aged ones could, if they're very successful, or childless.
Last edited by slowlane3; 09-02-2019 at 05:39 PM..
what do you mean by that? nevermind I'll look into it. The homes here only sell to people who know each other. Thus when you buy a property, just as we did, nothing was stated about the Springs since it would increase the value. Actually the owner inherited it and likely didnt know about the springs. I've always felt if it was sold, that's the deal. You always go out to a property here, there is often more than what is in the MLS real estate listing
Sara...."Stepped-up basis" is an accounting term applied to capital gains on any asset, whether real property, stock investments, etc.
If your son is listed on your home's deed, then when he eventually after you die, sells your home and realizes a taxable "Capital Gain", he will be taxed based on the amount the home value has increased since YOU bought it.
On the other hand, if he is NOT on the deed, but only gets the house after you die, then when he finally sells it, the I.R.S. will tax him only on the amount the home's value has increased since the day he inherited it. Which will likely be a much smaller amount.
Similarly, if he inherits any stock shares from you, and much later sells them at a higher price, his capital-gain tax will be based on the stock's price (stepped-up value) on the day you died (likely advantageous to him) -- NOT on its price the day you originally bought it.
Last edited by slowlane3; 09-04-2019 at 08:16 AM..
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