• Skip to main content
  • Skip to primary sidebar

Ask Liz Weston

Get smart with your money

  • About
  • Liz’s Books
  • Speaking
  • Disclosure
  • Contact

Q&A: How to give away your house

January 2, 2023 By Liz Weston

Dear Liz: I want to make sure a close friend of mine gets my house after I pass away. Which is better tax-wise for this friend, adding her to my deed or leaving the house to her in my will? My fear of leaving it to her in my will is that a family member may try to contest the will. While I will leave my family member money in my will, I want to make sure that the house goes to my friend.

Answer: If you add your friend to the deed, you’re making a gift of the home to her during your lifetime. That means if she ever sells the house, she could owe taxes on the appreciation that happened since you purchased the home. If you bequeath the home to her, on the other hand, the gains that occur during your lifetime won’t be taxed. You can leave her the home via a will, a living trust or, in many states, a transfer-on-death deed. (You can read more about this option in the next section.)

If you’re concerned about someone fighting your decision, please get appropriate legal advice. Estate planning can get complicated, and most people would benefit from an attorney’s help, but that’s especially true if you have contentious relatives.

Related Posts

  • Don't give your adult kids your house

    Adding an adult child to your house deed, or giving them the home outright, might…

  • Should you give your kids an equal inheritance?

    Your estate plan may be your last words to those you leave behind. If you’re…

  • Get advice before transferring house deed

    Dear Liz: My mother will be 88 in August. She owns her own condo, which…

  • Q&A: They want to give the caretaker the house she lives in without imposing a tax burden

    Dear Liz: Our family owns a vacation home. A caretaker for the property lives in…

Filed Under: Inheritance, Q&A

Reader Interactions

Comments

  1. Paula says

    January 8, 2023 at 5:41 pm

    Dear Liz, Regarding adding a person to the deed on property in Texas, does the same hold true on property as a home? That is, can the property appreciation be taxed?

    • Liz Weston says

      January 10, 2023 at 4:18 pm

      If it’s sold, yes. IRS Publication 523 explains the rules.

Primary Sidebar

Search

Copyright © 2025 · Ask Liz Weston 2.0 On Genesis Framework · WordPress · Log in