07/22/2026
A client added their daughter to the deed to avoid probate. Clean, simple, done.
The estate attorney saw it differently.
Three things nobody told them:
1οΈβ£ Adding a name transfers your original cost basis. The taxable gain calculates from what you paid in 1991, not today.
2οΈβ£ Inheriting the home through a will would have given her a stepped-up basis to current market value. Same house, very different tax bill.
3οΈβ£ A gift tax return was required. They found out after.
One conversation with the right person before the deed gets filed can change everything. Always ask me about anything to do with your home. If I don't have an answer, I can refer you to my trusted estate attorney.
Drop a comment if you need a referral.