🏡💰 Want to pass your home to your kids without them getting slammed w...

Don't ever let your parents give you their house. Instead, do as the rich do. Well, kid, I'm getting pretty old, so I'm giving you the house. No, mom, that's a terrible idea. Do not do that. Well, I wasn't expecting that reaction. I thought you would be thrilled. Of course I'm grateful and I want the house, but you bought this house 50 years ago for $200,000. Now it's worth $1.2 million. Talk about some good appreciation. This means if I sold the house, I'd pay an insane amount of capital gains taxes. How much? Let's calculate it. It gained a million dollars in value, so the total taxes I would owe? Over $340,000. Oh my gosh, so what do we do? You're going to put the home in a living trust and then add me as the beneficiary. Okay, what does that do? First, when I inherit the house, I'll get a step-up in basis and then can sell the house tax-free. And second, I won't have to go through expensive, annoying probate, which will save me thousands. Wow, you're a genius. How'd you know about all this? I follow Addison. She shares all the important finance stuff that you never learn in school.