People should never transfer title without consulting with a financial planner or a tax accountant. The lawyers will often just follow the client’s request without pointing out the tax implications.

This article tells the story of a couple who switched title of the family home to their children. This transaction had the result of forfeiting the principal residence tax free capital gain status. 

 The estate saved $26,700 in probate fees but paid $700,000 in capital gains!! Sad…

It pays to consult first. Read the full story here.