A lawyer has created a handy video telling her followers NOT to let their parents gift them their house!
@Lawmother put on her acting hat to play the role of a mother and daughter for this money-saving TikTok clip.
“Never let your parents give you their house. Do this instead,” the lawyer told her followers.
We’re all ears!
And then it’s dress up time.
Playing the role of an older mom, she says: “Daughter, I’m giving you my house, so you can manage it. And to make things smoother when I die.”
“Don’t do that mom,” the daughter character responds.
“What you don’t wanna help me and yourself?” the mom asks.
“I do mom, it’s just you bought the house for $100,000. And it’s now worth $800,000,” the daughter states.”If you transfer it to me now, I’ll be responsible for paying the $700,000 in capital gains tax when I sell it,” she adds.
The fantasy mom asks: “What should I do?”
And here’s what we never knew we needed to know…
“Put your house in a revocable living trust and name me as the beneficiary. I’ll receive this capital gains tax free. And it will avoid probate,” the daughter says.
Yeah… that’s a lot of money.
Watch the full video here:
@lawmother Avoid capital gains tax with a living trust. Download a free copy of my bestseller, Legally Ever After to learn more. Link in my bio. #tax #realestate #generationalwealth
Here’s what people thought of the housing dilemma:
Families shouldn’t have to stress about housing, this poster feels.
Well, yeah – we’d buy that for a dollar!
Some folks don’t have parents giving up their homes, that’s for sure!
Take heed! It could have a major impact on your financial future.
Source: https://twistedsifter.com/2023/10/ill-be-responsible-for-paying-the-700000-in-capital-gains-tax-lawyer-tells-parents-to-not-give-their-homes-directly-to-their-children-instead-put-it-in-a-trust/
