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Should You Sell Your House for $1?
Manage episode 380103450 series 2841622
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Would it ever make sense to sell your house for a few bucks? Jason Gabrielli dives into the world of estate planning, specifically focusing on the ownership of your house. Jason addresses a common misconception about selling your house to your kids for a low price, debunking the idea that it can help avoid taxes. He explains the federal estate tax exemption and the absence of estate tax in New Jersey, shedding light on why most people don't have to worry about estate taxes. Jason also discusses the concern of protecting your house from the cost of care and the potential downside of transferring ownership. Additionally, he touches on probate avoidance and the ease of estate administration in New Jersey. You will learn the importance of understanding the liability that comes with transferring ownership to your children, potential drawbacks, and considerations.
Tune into this episode to also learn:
- What are the potential benefits and drawbacks of selling your house to your children for a reduced price?
- Why has the concept of selling your house to your kids for a few dollars become a common consideration in estate planning?
- What are the legal and financial implications to be aware of when considering such a transaction?
What we discussed
[00:01:59] Federal estate tax exemptions are high; no NJ estate tax
[00:04:14] Most won't face death taxes; considering home protection from care costs
[00:06:15] NJ probate is reasonable; selling home to kids raises liability issues
[00:9:17] Selling a house to kids for $10 can cause significant tax issues
3 Things To Remember
- Many people don't need to sell their house to their kids for $10 to avoid taxes, thanks to high federal estate tax exemptions and no estate tax in New Jersey.
- Giving your house to your children might protect it in some cases, but it can bring big risks like potential legal troubles for your children affecting your living situation.
- In New Jersey, passing on your assets through probate is generally simple and affordable, so selling your house to your kids for $10 to avoid it might not be necessary.
Useful Links
Connect with Jason Gabrieli: jgabrieli@HFMadvisors.com | LinkedIn
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