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Message:: [QUOTE="Treashunt, post: 669053, member: 6763"]cole guy: Nice of your parents to sign over the house, but.... that is not necessarily the smartest thing to do. Sure, a lawyer will make the transfer, but consider: If your estate is (say) $1,000,000 then there is NO estate tax due this year (2009, who know about the future). (there is no such thing as an inheritance tax). Another thought: say you have two children, and your will says: 50:50 on all, so they share everything. BUT! If gifted to you right now, as Coleguy's parents did, then you pick up their cost basis, assume that they paid $50,000 for the summer house and it is worth $150,000.Your basis on sale is $50,000, or a profit of $100,000. Taxes due on profit of $100,000. (no exclusion, since it is not the primary residence.) BUT: If passed to you thru their will, you get the value as of the date of death (or 6 months thereafter), say $150,000.Six months later you sell it, for $150,000. Taxes due? zero. So, not always the right thing to do, but there are exceptions, say items that have not increased in value, or an estate that is high enough to increase the estate tax due. As far as a trust is concerned, check you state laws, but, the basis rule is the same as above. I am not an attorney, nor do I play one on TV, but I do estate taxes. Get a good Accountant, he/she will frequently disagree with your attorney.[/QUOTE]