🙅🏻 Never transfer assets in your kid's name
Regulations & Compliance
intermediate
capital gains tax
step-up in basis
estate planning
generational wealth
trusts
M
Summary
AI-generatedAvoid transferring property directly to children to prevent them from incurring significant capital gains taxes upon sale. Instead, consider placing the property in a trust with the heir as the beneficiary and allowing them to inherit it, which qualifies for a step-up in basis.
Key insights
Utilizing trusts and step-up in basis is presented as a strategy to preserve family wealth and minimize tax liabilities to the IRS.
Mistakes to avoid
Gifting a home to a child while the parent is alive can result in the child owing capital gains taxes on all appreciation that occurred during the parent's lifetime if they sell the property.
Frequently Asked Questions
Curated by Learn STR by GoStudioM · Summary & key insights generated by AI · Reviewed by editorial