How do I transfer real estate to my kids?

Q: I have property in South Carolina that I would like to do a quick deed to children in New York.  How do I go about doing that?

A: Assuming that you own the property, you should give them a warranty deed, which needs to be recorded with the register of deeds in the appropriate county. Deeds must meet specific legal requirements, which you can read here. I recommend contacting a title company in the county where the property is located to assist you with the transfer. If it has a branch office in the area where you live, that will make the transaction even easier. Your children should get title insurance as part of the transaction to be sure they have a clear title.  A "quitclaim" deed is not recommended in a situation like this.

When you give property to someone else, you also give them your tax basis. If they sell, they will owe capital gains tax on the gain since you bought it. On the other hand, if you leave the property to them at your death, they will get a stepped-up basis in value to the date at your death.

Comments

[More advice]

Put it in a trust with the kids as beneficiaries and you as trustee. avoids probate too.