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My understanding of what happens when the future beneficiaries names have been added to the title of the house with the owner is this:

CIVIL LAW: the house now belongs to all parties named on the deed.
Any creditor can attach a lien to the property if a judgment is
made against any owner named on the title.

TAX LAW: the house belongs to all named, but unless a completed gift has been made, the tax basis remains with the original owner and the added title holders have ZERO basis in the property. So if the original owner passes, the remaining holders get stepped up basis on the property 100% and probate is avoided.

Phil, Ira and others, do you agree?

Arleen
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