The Smartest Way To Leave Wealth And Property To Our Kids

Aerial view of homes
Alyssa Guzik
October 25, 2022

It’s amazing when someone from an older generation chooses to give their home to a family member. We do a little “Ayyy! I got a house!” dance in celebration. Until that tax bill comes and the government wants their cut. 

There’s a way around this, though.

Inherited properties have this little thing called the capital gains tax. Whoever inherits has to pay tax on any value gained over the life of ownership. We want to build Black generational wealth, but this could end up causing a loss of wealth instead of a gain.

How do we use the system to get around it? Place the home in a trust. We can use them to our advantage. Placing property in trust with the desired inheritor as the beneficiary means they won’t have to pay taxes on any additional appreciation.

This process, known as a step up in basis, is one of the best ways to create generational wealth - which is why this information has been gatekept for so long. Generational wealth is something we need and aspire to in the Black community. But it needs to be obtained in a way that sets the next generation up for added success and wealth.

We have a quick favor to ask:

PushBlack Finance is a nonprofit dedicated to raising up Black voices. We are a small team but we have an outsized impact:

  • We reach tens of millions of people with our BLACK FINANCIAL NEWS & ECONOMIC EMPOWERMENT STORIES every year.
  • We fight for ECONOMIC JUSTICE to protect our community.
  • We run VOTING CAMPAIGNS that reach over 10 million African-Americans across the country.

And as a nonprofit, we rely on small donations from subscribers like you.

With as little as $5 a month, you can help PushBlack raise up Black voices. It only takes a minute, so will you please ?

Share This Article: