Q: What would be the best way to pass a house to adult child, via will or gifting before death .please explain ramification

A: Deciding whether to pass a house to an adult child through a will or by gifting before death involves considering various factors, and each option comes with its own ramifications.

If you choose to pass the house through a will, it means that ownership will transfer to your adult child upon your death, according to the terms outlined in the will. One advantage of this approach is that you retain full control and ownership of the property during your lifetime. However, the property will likely go through the probate process, which can be time-consuming and may involve legal fees.

On the other hand, if you opt for gifting the house before your death, you transfer ownership while you are still alive. This can have potential tax implications, as there are gift tax rules to consider. The value of the gift may be subject to gift taxes, and there are annual and lifetime exemptions that can affect the overall tax impact. Additionally, by gifting the property, you relinquish control over it, and your child becomes the owner immediately.

A: Neither. With a Living Trust. I have done countless thousands for precisely this reason!

A: Parents can deed property to their child(ren) yet retain a life estate for the two of them. Upon death of the survivor, the children take the house. That is a pretty clean way of doing it. As part of the deed or in an executed agreement, it should be state who will be responsible for upkeep and expenses related to the house during the exercise of the life estate. For details and the language to use, consult a local attorney.