Ask Terry Questions Step Up to parents house

Step Up to parents house

By Terry Savage on June 25, 2024 | Housing / Real Estate

A couple years ago we recorded a QCD from my mom to my mom , me and my 2 sisters. When my mom passes away, will my sisters and I still get the “step up” value on the house?


Terry Says

I don’t know what you mean by a QCD!  In my terms, that’s a qualified charitable distribution, which doesn’t apply here.

Did you/your mom change the title to the house and gift it to you and your sisters?  If so, your cost basis on the house is the value on that date that gift was made to you.  If your mother still retains title to the house, then at her death the new cost basis under the “step-up” rule is the value of the house on the date of her death.

You need to be very certain about how the house is titled now — or when it changed title, if it did.



a personal
finance question