Anonymous
06/26/2025 14:02
Subject: Best way to pass down real estate
No step-up in cost basis if co-owned by your husband.
Anonymous
06/26/2025 13:48
Subject: Best way to pass down real estate
Co-ownership also comes with lots of pitfalls. The property is now an asset to both parties, so could be considered as such in a lawsuit/creditors. Also lots of room for disputes regarding maintenance, upgrades, etc. Agree with the suggestions of a trust, as that also can provide some additional protection against lawsuits/creditors.
Anonymous
06/26/2025 13:04
Subject: Best way to pass down real estate
Could they do a Transfer on Death deed? In VA at least, would avoid probate and get the stepped up basis. Not sure about other jurisdictions.
https://thelandlawyers.com/the-transfer-on-death-deed-needless-expense-or-savings-tool/
https://thelandlawyers.com/the-transfer-on-death-deed-needless-expense-or-savings-tool/
Anonymous
06/26/2025 11:59
Subject: Best way to pass down real estate
Anonymous wrote:My FIL would like to pass down his house to my husband upon death, and wants to facilitate this by making my husband a co-owner with survivor’s rights while FIL is still alive and well.
But I’ve read somewhere that this is disadvantageous in some ways, and that putting the house in a trust is much better.
Can anyone explain to me whether/why this is the case, so I can explain to DH and FIL?
And while I’m at it, I’d welcome any tips for making it as easy as possible for FIL to set up a trust. He has his hands full already. FIL is out of state, so I don’t need recommendations for local attorneys.
Thanks!
He should put the house in a trust and name your husband as a beneficiary. This has 2 advantages:
(1) your husband will avoid probate, and
(2) inherit the house with a stepped up basis
Depending on how long ago you FIL bought the house, the latter may have substantial tax implication if/when you decide to sell it. Putting your DH on the title only accomplishes #1 and foregoes #2.
Setting up a trust should be easy. He should hire a trust and estate lawyer for this.
Anonymous
06/26/2025 11:22
Subject: Best way to pass down real estate
My FIL would like to pass down his house to my husband upon death, and wants to facilitate this by making my husband a co-owner with survivor’s rights while FIL is still alive and well.
But I’ve read somewhere that this is disadvantageous in some ways, and that putting the house in a trust is much better.
Can anyone explain to me whether/why this is the case, so I can explain to DH and FIL?
And while I’m at it, I’d welcome any tips for making it as easy as possible for FIL to set up a trust. He has his hands full already. FIL is out of state, so I don’t need recommendations for local attorneys.
Thanks!
But I’ve read somewhere that this is disadvantageous in some ways, and that putting the house in a trust is much better.
Can anyone explain to me whether/why this is the case, so I can explain to DH and FIL?
And while I’m at it, I’d welcome any tips for making it as easy as possible for FIL to set up a trust. He has his hands full already. FIL is out of state, so I don’t need recommendations for local attorneys.
Thanks!