3433: [Part 2] Transferring a Primary Residence to Children by Sean Mullaney of FI Tax Guy on Legacy Decisions

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🗓️ 24 January 2026

⏱️ 10 minutes

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Summary

Discover all of the podcasts in our network, search for specific episodes, get the Optimal Living Daily workbook, and learn more at: OLDPodcast.com. Episode 3433: Sean Mullaney outlines the potential pitfalls of using joint tenancy or outright gifts when transferring a home to adult children. From unexpected capital gains tax and loss of control to legal complications and family disputes, he explains why revocable living trusts often provide a safer, more tax-efficient alternative. Read along with the original article(s) here: https://fitaxguy.com/2020/08/ Quotes to ponder: "Capital gains taxes generally aren’t an issue after the original owner’s death. But they can be an issue before his or her death." "Transferring an interest in your home to another person relinquishes some of your control over the property." "Adding multiple adult children to the title as joint tenants with rights of survivorship can create issues after the parent’s death." Episode references: IRS Form 709: https://www.irs.gov/forms-pubs/about-form-709 Learn more about your ad choices. Visit megaphone.fm/adchoices

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1:05.7	Transferring a primary residence to children, part two, by Sean Mullaney of Phi Tax Guy.com.
1:14.0	Other problems with joint tenancies.
1:17.2	If the capital gains tax upon the original owner's death isn't an issue, why not use
1:22.6	a joint tenancy to transfer your house to your adult children?
1:26.9	Here are some of the considerations. Capital gains tax.
1:31.5	Wait, what? I thought you said capital gains taxes were not an issue. They generally aren't an issue
1:37.6	after the original owner's death, but they can be an issue before his or her death. What if during
1:44.1	the owner's lifetime,
1:45.4	the house is sold? What if there's a pressing need to sell the house, perhaps to help pay for
1:50.2	long-term care? The owner-occupant is at least somewhat protected by the $250,000 per person
1:57.4	primary residence gain exclusion. But the adult child is not protected by that
2:02.7	exclusion if the home is not their primary residence. The adult child could have to pay capital
	...

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