If my mother is leaving her house to me, would it be wiser to put my name on the title now before she dies or wait for it to go through probate?

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If my mother is leaving her house to me, would it be wiser to put my name on the title now before she dies or wait for it to go through probate?

My mother is leaving her house to me but we’re unsure if it would be wiser to put my name on the title now before she dies or wait for it to go through probate?

Asked on January 11, 2012 under Real Estate Law, Texas

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

From a tax perspective, it would be wiser for your mother to Will you her home or give it to you in trust as opposed to giving it to you presently. The reason for the above suggestion is that under Internal Revenue Service Rules, when a person passes away, the basis (cost of the property) is increased to a value at the date of the person who just died.

By doing this, the person who inherits the property gets a stepped up basis for the property which would not be subject to capital gains tax in the event the property is subsequently sold.

 


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