Talk of The Villages Florida - View Single Post - Done the ladybird deed, here the details.
Thread: Done the ladybird deed, here the details.
View Single Post
 
Old 07-17-2025, 07:51 AM
Haggar Haggar is offline
Senior Member
Join Date: Mar 2020
Posts: 235
Thanks: 1
Thanked 179 Times in 98 Posts
Default
Quote:
Originally Posted by vintageogauge View Post
If you trust your son just put everything in his name now and the deal is done.
That would be considered a gift if you deed it to him now. Requiring a gift tax return - no tax - just an information return informing the IRS you are using up part of your lifetime exclusion. No step up in basis.

If it passes to him upon death he gets step up basis to market value.

Add to that you don't get Section 121 on gain non-taxability on the first $250,000/$500,000 since you don't own the home if you sell it. He will pay Capital Gains based upon the tax basis of the house since gifts get no step up.

All in all a very bad idea.
__________________
Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passions, they cannot alter the state of facts and evidence. John Adams
Last edited by Haggar; 07-17-2025 at 03:26 PM.
Reply