Suze Orman’s Warning to Parents: That Dollar Deed Could Trigger $520,000 in Capital Gains Tax
Key takeaways
- Suze Orman, on her Women & Money podcast, told the caller that single signature could trigger a tax bill of $520,000 when the daughter eventually sells.
- Transferring property to children via dollar deed triggers carryover basis, forcing heirs to pay capital gains tax on decades of appreciation;
- Parents should use revocable living trusts, Lady Bird deeds, or Transfer on Death deeds to avoid probate while preserving the step-up in basis and protecting property from the child’s creditors.
Suze Orman’s Warning to Parents: That Dollar Deed Could Trigger $520,000 in Capital Gains Tax Canva | theboone from Getty Images Signature and Khosro Don Lair Wed, May 27, 2026 at 4:55 PM GMT+7 5 min read DX-Y.NYB A New York father sold his house to his daughter for one dollar, put her name on the deed, and thought the estate planning was handled. Suze Orman, on her Women & Money podcast, told the caller that single signature could trigger a tax bill of $520,000 when the daughter eventually sells.
Parents transfer property to adult children to "avoid probate" or "keep it simple." Orman s verdict is blunt and correct: the dollar deed is one of the most expensive mistakes families make, and the IRS sees right through it.
Transferring property to children via dollar deed triggers carryover basis, forcing heirs to pay capital gains tax on decades of appreciation; a $600,000 house originally purchased for $80,000 could generate a $520,000 tax bill instead of zero through proper planning.