Answer
Apr 17, 2025 - 12:18 PM
Yeah, I've heard of those. One of the problems that I'm finding, and this may apply here, a lot of, especially here in Silicon Valley, we have second, third generation immigrants here. And what they will do is they will actually put their kids on the deed of a property while they're still alive. And when they do that, They are giving that to the kid at the original basis. There is no step-up basis on their part of the ownership. So the only way they get the step-up basis is if they're not in ownership. Or they only get step-up on, let's say in some cases, it's a kid, you know, the adult child and mom and dad, but they have a 50-50 ownership. Well, they only get step-up basis on the 50% of the parents. And they have to pay taxes as if they bought it at the original basis. So, yeah, that's a problem. And we see that a lot. So don't put your kids on the title because you eliminate that tax option of step-up.
