Dear Liz: I am in my late 70s. My husband is in his mid 80s and in poor health. Are there advantages to transferring the title to our house into my name alone so I can be the sole owner?
Answer: Owning the house solo could make it easier for you to sell or refinance without your husband’s involvement.
But you would miss out on a significant tax break. At least one half of the property — and both halves in community property states — get a new value for tax purposes when a spouse dies. This “step up” in tax basis can reduce or eliminate capital gains taxes when the house is sold.
There could be additional drawbacks, depending on where you live and your circumstances. A tax pro or an estate planning attorney can give you personalized advice.
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