Legal Question in Wills and Trusts in Florida

Re: Joint ownership vs. life estate?

In follow-up to other attorney's comments, your daughter should receive a step-up in basis if you retain a life estate. If you make her co-owner with right of survivorship, she will receive a step-up only in the half she acquires from you at your death. Ask your attorney about an "enhanced life estate", in which you transfer a life estate to your daughter, yet retain full control over the property until your death. Another possibility is to set up a living trust for your property, including your home, thereby avoiding probate on all assets held by the trust, and receiving a step-up in basis on all those assets.

Re: Joint ownership vs. life estate?

Good questions. If you are trying to avoid probate issues and have the property pass directly to your daughter, the best thing to do is title the property jointly. The survivor of the two will automatically own the property upon the other one's death. The draw back is that each person is jointly and severally liable for such things as taxes. But, you get to retain many more rights than you would if you only kept a life estate. The basis for capital gains purposes is the same. If that is your main concern and you would like your daughter to get a "stepped up basis" (the higher value at your death rather than the lower value at time of purchase), you cannot give her rights to the property while you are alive. She must get the property as inheritance/devise. Best wishes.