CPA Ben Nader reacts to and debunks viral advice claiming that homeowners must use a living trust to avoid inheritance taxes for their children. He explains that a step-up in basis applies to property in a will just as it does in a trust, noting that the original creator is misinformed about tax law.
CPA Reacts: The Truth About Wills, Trusts, and Inheritance Taxes
CPA Ben Nader reacts to and debunks viral advice claiming that homeowners must use a living trust to avoid inheritance taxes for their children. He explains that a step-up in basis applies to property in a will just as it does in a trust, noting that the original creator is misinformed about tax law.
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Analysis
Never transfer your home into your kid's name or leave it to them in your will.
Never transfer your home into your kid's name or leave it to them in your will. You're doing. Yo, mom, dad, take me out the will. This guy named Ryan Nork, who isn't a CPA and isn't an attorney, said to never transfer your home through a will. So go ahead and take me out of it. You see how goofy that sounds? You're doing way more harm than good. When you've owned your property for a long time, the property value has appreciated a lot. Buddy just said appreciated instead of appreciated. So I now know he just learned that word today, which kind of confirms that I was thinking this is not his field at all. So if you pass your property to your kids in your will, they are responsible for paying all the capital gains taxes on your property, which after probate court, they'll be lucky to get even 65% of the value. Just a completely made up figure that he pulled out of you know where. If he can find me a source backing up that 65% number, I'll put his name in my will. Probably say no though. You work so hard to build. Instead, you need to put it into a living trust and name your kids as the beneficiary so when you're gone, they inherit the property tax free through the trust in a special code called a stepped up in cost basis. You do not need a living trust to get a step up in cost basis. A will gets the exact same tax treatment here. There are zero benefits to a living trust in this scenario. Just. Just because Buddy has a cool background and a microphone does not make him credible. So share this with your parents. I just had my entire family block your page. I never want to see you or your videos again. If you enjoyed the video, follow for more. Thank you.
- 01The Controversial Hook
Start with a clip of someone making a bold, counter-intuitive, or controversial claim.
- 02The Sarcastic Rebuttal
The reactor enters with an extreme, sarcastic application of the claim to show its absurdity.
- 03Credential Audit
Directly attack the original speaker's lack of professional qualifications.
- 04Reality Check
Explain why the advice sounds ridiculous or harmful in the real world.
- 05The Setup
The original clip returns to explain the 'logic' behind their claim.
- 06The Petty Nitpick
Interrupt again to point out a minor error (like pronunciation) to undermine the speaker's intelligence.
- 07The 'Fake' Statistic
The original clip gives a specific negative consequence involving a number.
- 08The Call-Out
Identify the number as fake and offer a sarcastic challenge.
- 09The Wrong Solution
The original clip offers their 'fix' to the problem.
- 10The Expert Truth
Provide the actual facts that prove the 'fix' is unnecessary or identical to the standard way.
- 11The Aesthetic Dismissal
Remind the audience that high production value does not equal truth.
- 12Final Purge & CTA
Advise the audience to avoid the creator and follow for the real truth.