[WSBAPT] Revocable trust vs. transfer on death deed(s)

[Candace Wilkerson]

Hi Listmates,

An local attorney friend of mine is dealing with the issue below, and I suggested that the listserv might have some ideas-since I wasn't quite sure how to deal with it.

I have PC's who do not want to do a Revocable Living Trust and instead do a Transfer on Death Deed to their three children.  One child is over 18 years old, but the other two are under 18 years old.  The reason the PC does not want to do a Revocable Living Trust is to preserve the step up in basis on the appreciation of the property.  PC's believe the potential capital gains on the eventual sale of the home does not warrant putting the property into a Revocable Trust.  My question is whether doing a TD Deed is even a viable solution?  Each spouse would have to do one for their 1/2 interest and if one of them passes before the other the deceased spouse would be passing their interest to the kids and not the spouse (which is not what I think they would want).  Also, how do minors take title to property?  In the name of the children's trustee?

The PC's want to allow their older daughter to move into the house and keep it until the youngest is 18 years old and then it can be sold at that time.  Is there another solution that anyone would suggest?

Thanks,
Candace Wilkerson

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