Legal Question in Wills and Trusts in New York

Before you make a decision on transferring your home to your children, you need to speak with an estate planning attorney to determine the best course for you. The issues surrounding a transfer may be complicated. For example, if you transfer the property to your children and reserve a life estate, your children would not receive a stepped up basis on 100% of the property. What this means is that they may have to pay a higher capital gains tax upon sale of the home. On the other hand, they would get a stepped up basis on 100% of the property if they received it upon your death.