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ADFAVS OF 2025 ✨ 🎉 re-sharing some of my ultra-viral vids from this year to help yall save more money 🤟🏼
🏡💰 Want to pass your home to your kids without them getting slammed with taxes? Here’s an idea:
Here’s how a living trust + step-up in basis can save your family thousands 👇 📜
1. Put Your Home in a Living Trust A living trust lets you keep control of your home while you’re alive — but once you pass, it goes directly to your beneficiary (like your child) without probate. ⚖️
2. Step-Up in Basis: What That Means Normally, if your kid sells the home you gave them while you’re still alive, they owe capital gains tax on the increase in value since YOU bought it. BUT—if they inherit the home through a trust after you pass, the “cost basis” steps up to the home’s value at the time of your death. That means: far less (or even zero) capital gains taxes when they sell. 🙌
🔑 Example:
• You bought the home for $100K
• It’s worth $600K when you pass
• Your kid inherits it and sells for $620K
• They’re only taxed on the $20K gain, not the $520K 💡
📋 How to Get a Living Trust
• Hire an estate planning attorney (costs $1,000–$3,000 on average)
• Or use an online legal service if your situation is simple
• Make sure the home is properly retitled into the trust!
🏠 Other Options to Transfer a Home
⚠️ Quitclaim Deed – Easy but risky. No tax protections.
⚠️ Adding Your Kid to the Title – May trigger gift tax + they lose the step-up in basis.
✅ Transfer on Death Deed (in some states) – Avoids probate, but check your local laws. 🎯
Bottom line: If you want to pass your house to your kids without leaving them a tax nightmare, a living trust with a step-up in basis is one of the smartest tools out there.
🧠 Always talk to a tax pro or estate attorney to see what’s best for your family’s situation! #EstatePlanning #LivingTrust #StepUpInBasis #CapitalGains #FinancialPlanning #MoneyTips #TrustFund #GeneionalWealth #AvoidProbate #TaxSmart #RealEstateTips #PersonalFinance #InheritancePlanning
@addison.jarman
