Question 1

My parent wants to add me to the deed now so I can inherit the home. Is that a good idea?

Accepted Answer

It's a common instinct — and it often backfires. When a parent adds a child to the deed as a joint owner, that child takes the parent's original cost basis. If the home was purchased for $120,000 and is now worth $500,000, the child carries a $120,000 basis. Sell it after the parent passes, and you'll owe capital gains tax on $380,000 of gain.Compare that to inheriting the property: heirs receive a stepped-up basis equal to the home's fair market value at the date of death. In the same example, the inherited basis is $500,000 — meaning little or no capital gains tax if the home sells close to that value.There's also a risk exposure issue: once a child is on the deed, the property can be affected by that child's creditors, a divorce, or a judgment. The parent may technically own the home but no longer fully controls it.There are cleaner ways to accomplish the same goal — a Transfer on Death deed, a revocable living trust — without the tax and liability exposure. We help families understand those options before anyone signs anything.

Question 2

Should we sell the family home before or after a parent passes?

Accepted Answer

This is one of the most important questions a family can ask — and the answer almost always favors waiting until after, if the situation allows.When a home is sold before a parent passes, any capital gains are calculated from the original purchase price. A home bought decades ago for $90,000 that's now worth $450,000 could trigger a significant tax bill. After death, the property receives a stepped-up basis to its fair market value at the date of death — often eliminating most or all of the capital gain for the heirs.There are exceptions. If the parent needs Medicaid or long-term care funding, the home may need to be handled differently. If the property is in disrepair and costs are mounting, selling sooner may be the right call. And sometimes a parent simply wants to see the proceeds distributed while they're alive.These decisions involve real numbers and real trade-offs. We help families think through the timing before making a move they can't undo.

Question 3

What's the best way to pass real estate to my children without going through probate?

Accepted Answer

The most common tools are a Transfer on Death (TOD) deed, a revocable living trust, or joint tenancy with right of survivorship — each with different trade-offs.A TOD deed is the simplest. You record it now, designate your heirs, and the property transfers to them automatically at your death without court involvement. It costs very little to set up, doesn't affect your ownership while you're alive, and can be changed or revoked at any time.A revocable living trust gives you more flexibility — you can specify conditions, stagger distributions, and name a successor trustee to manage the property if you become incapacitated before you pass. It requires more setup but offers more control.Joint tenancy with right of survivorship also avoids probate, but it creates shared ownership now — which brings exposure to the co-owner's creditors, legal issues, or financial problems.The right structure depends on your family situation, how many heirs are involved, whether there's a mortgage, and how the property fits into your broader estate plan. We help you understand the real estate piece so you can go to your estate attorney with the right questions already answered.

Question 4

How do we have this conversation with aging parents who don't want to talk about it?

Accepted Answer

This is the question most families are really asking, even when they call us about something else. The conversation feels impossible because it touches on mortality, control, and family dynamics all at once.A few things tend to help. Starting with a specific, practical question — "What happens to the house if something happens to you?" — is less threatening than "We need to talk about your estate." Framing it around protecting them, not managing them, changes the tone. And having a third party in the room — someone like us who isn't a family member with a stake in the outcome — often makes the conversation easier than when it's just children and parents.We've had this conversation with a lot of families. We know how to ask the right questions without making anyone feel pressured. If the hardest part is getting everyone in the same room, that's exactly where we can help.

Question 5

What is a stepped-up basis and why does it matter for inherited property?

Accepted Answer

When you inherit real estate, the IRS resets your cost basis to the property's fair market value on the date the previous owner passed away. This is called a stepped-up basis — and it's one of the most valuable tax benefits in the entire tax code.Here's why it matters: if your parent purchased a home for $85,000 forty years ago, and it's worth $550,000 when they pass, your inherited basis is $550,000 — not $85,000. If you sell the property shortly after for $550,000, you owe little or no capital gains tax. Without the step-up, the gain would have been $465,000 — taxed at capital gains rates that can reach 20% federally, plus state taxes.This benefit can be lost or reduced if the property is transferred before death in certain ways — like adding a child to the deed as a joint owner. Timing and structure matter enormously. Understanding how the stepped-up basis works is one of the first things we walk families through before any decisions are made.

Question 6

My parents own rental property. What happens to it when they pass?

Accepted Answer

Rental property follows the same basic rules as a primary residence — it transfers through whatever ownership structure is in place, whether that's a will, a trust, joint tenancy, or a Transfer on Death deed. If none of those are set up, it goes through probate.What's different about rental property is the complexity it adds. There may be tenants with active leases who have rights that survive the owner's death. There may be depreciation recapture that affects the tax calculation when the property eventually sells. And if multiple heirs inherit it together, disagreements about whether to keep it, sell it, or manage it can become contentious quickly.The stepped-up basis applies here too — which can significantly reduce the capital gains exposure when heirs sell. But the timing of the sale, the condition of the leases, and how ownership is structured all affect the outcome. We help families sort through the real estate piece so the right professionals — attorneys, CPAs — can do their work with accurate information in front of them.

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Questions We Hear All the Time

My parent wants to add me to the deed now so I can inherit the home. Is that a good idea?

Should we sell the family home before or after a parent passes?

What's the best way to pass real estate to my children without going through probate?

How do we have this conversation with aging parents who don't want to talk about it?

What is a stepped-up basis and why does it matter for inherited property?

My parents own rental property. What happens to it when they pass?

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