frequently asked questions

Another reason you should not gift your home or real property to your children (part 2 of 4):

Another reason you should not gift your home or real property to your children (part 2 of 4):

Another reason you should not gift your home or real property to your children is the loss of property tax exemptions. For example, if you can claim over 65, disabled, disabled veteran, and/or homestead exemptions, you may be paying significantly less in property taxes than if you did not have those exemptions. If you gift your home or real property to your children, you will lose any of these exemptions that you may be able to claim. Sometimes people say they want to “add a child to their deed”. This is essentially giving them an undivided fractional interest in the property and the effect on property taxes would be that you would lose your exemptions on the fraction that you gifted. If your children inherit your home or real property, you keep the exemptions during your lifetime possibly saving thousands of dollars in property taxes.

If you want to leave your home or real property to your children, there are better ways to do it than making a gift. Contact the Law Office of Roy Neal Linnartz, PLLC at 830-625-9300 for help planning to leave property to your children without the unintended consequences of gifting it to them.