[USER]

Looking for advice. My father is leaving his beach condo (value around $400K) to me in his will.

He is currently living in it but wants to move in the next year or so and is planning on giving me the keys at that time.

My husband and I are planning on putting some $$ into it for some renovations. What is the best option as far as the deed goes? Add me as a joint owner? Put it in a trust with me as a beneficiary?

Don’t worry about it since it’s in his will? I’m looking for the best way to protect our investment in the renovations but don’t want to create a taxable event for him and possibly avoid probate.

Thanks for any suggestions!

[Alicia]

You want the step up in cost basis…. So do not put your name on it in ANY FASHION. Be a beneficiary.

[Bill]

If you trust it will eventually pass to you when your dad passes away, your dad may be able to file a beneficiary deed (if available in your state).

This is what I did.

This would provide a seamless transfer to you when he dies, and the cost basis will step up to current market value.

If your concern is your dad might change his mind after you put money in it, better talk to a lawyer.

[Gala]

Put it in a irrevocable trust.
You will be the beneficiary.
This avoids probate issues.

[Jessica]

Hi there! Escrow Officer here – the Trust is a great option to protect assets!

I’d say the most cost effective would be to file a Transfer On Death Affidavit with the county or add yourself to title, but be certain to include survivorship language on the new deed.

Both of these scenarios will avoid any need for probate to transfer property to you.

Both filings SHOULD be tax exempt since you are father/child, but follow up with the county to confirm(:

[Rebecka]

Adding you as joint owner could trigger gift taxes and complicate things. A trust might be a better way to avoid probate and protect your investment.

Just leaving it in the will usually means probate, which can be slow and costly.

Since you’re putting money into renovations, having a clear agreement with your dad is a smart move.

Definitely consider talking to an estate attorney to find the best option for you

[Dawn]

What state are you in? If in Florida, he just has an attorney inexpensively do a “lady bird deed” & when he passes it goes straight to you when you show the tax collector/property appraiser the death certificate.

You get a step up in basis also for its value from the date of his passing. Just did this with my a family members condo.

[Andy]

Lady Bird Deeds, also known as enhanced life estate deeds, are currently recognized in Florida, Michigan, Texas, Vermont, and West Virginia.

In these states, a Lady Bird Deed allows the property owner to transfer their real property to a designated beneficiary upon their death, without having to go through probate.

[Cole]

With you putting money into it I would speak with a lawyer. I would think the answer is some sort of joint trust, not just one setup for him naming you as a beneficiary.

He could always change his beneficiary and meet the next Anna Nicole Smith

[Robert]

Get with a good tax lawyer or a good estate planning lawyer in whichever state your dad lives in.

Granted, lawyers are not cheap (I was not cheap when I was in private practice) but they will have the answers you need.

[Nick]

Just have him rent it out, you can manage it. He can pay you. Then when he actually passes, it can pass to you and you won’t have any problems.

I everything else you mention is a horrible idea.

[Connie]

If your father is open to estate planning now, putting the condo into a revocable living trust with you as the beneficiary is often the cleanest option.

It avoids probate, doesn’t trigger a taxable event for him, and allows a step-up in basis when he passes (which helps minimize capital gains if you sell later).

Adding you to the deed now could create a taxable gift and may affect your step-up in basis, so it’s usually less favorable.

If you plan to invest in renovations before he officially transfers ownership, having a clear written agreement about your contributions or starting the trust now can help protect your investment.

Definitely consult an estate attorney to tailor the best solution for your family’s situation.

[Author]

Posts