New York estate planning attorney Natalia A. Sishodia of Sishodia PLLC explains the importance of planning when transferring real estate to family members in New York. Without a structured plan, property owners can face significant tax consequences, including gift tax exposure, capital gains liability, and potential estate tax issues.

Strategies for Tax-Efficient Transfers

According to Sishodia, several strategies allow individuals to transfer property to family members with little or no immediate tax. The annual gift tax exclusion permits up to $19,000 per recipient in 2025 without triggering gift tax, and married couples can effectively combine their exclusions for a total of $38,000 per recipient.

A Qualified Personal Residence Trust (QPRT) can also play a powerful role for higher-value homes that are likely to appreciate. The owner transfers the residence to the trust, retains the right to live in it for a fixed term, and then passes the property to the named beneficiaries at the end of that term.

Inclusion of property in a will is another option, with a different but important tax effect. Attorney Sishodia points out that inherited property generally receives a stepped-up basis equal to its fair market value at the date of death.

Consulting an Estate Planning Attorney

For New York property owners thinking about gifting a home, adding a family member to the deed, or building real estate into a long-term estate plan, the right structure depends on the family’s goals, the property’s basis and value, and the timing of the intended transfer. Consulting an estate planning attorney before signing any deed can preserve options that are difficult or impossible to reverse later.

Original reporting: KTBS 3 (Shreveport) — read the source article.