Naming a beneficiary is rarely as simple as checking a box. People talk about putting it in her name—whether "it" refers to a house, a brokerage account, or a family business—as if they're just handing over a set of keys. It’s a massive gesture. It’s also a legal minefield.
You’ve probably seen it go wrong. A father wants to ensure his daughter gets the family home, so he adds her to the deed without thinking about the tax basis. Suddenly, she’s hit with a capital gains bill that eats half the value of the property. Or maybe a husband moves all his liquid assets into his wife’s individual account to "protect" them, not realizing he’s just triggered a gift tax audit or complicated a future Medicaid look-back period. Honestly, the impulse is usually rooted in love or protection, but without the right structure, that protection is a total illusion.
The Messy Reality of Property Deeds
Real estate is where the "putting it in her name" conversation usually starts. You’ve got a few ways to do this, and most of them have sharp edges. Joint Tenancy with Right of Survivorship (JTWROS) is the go-to for many couples. It’s easy. It’s clean. One person dies, the other gets the house. Done.
But what if you aren't married? Or what if you're trying to pass property to a daughter or a niece?
If you put her on the deed now, you are making a gift. The IRS sees that. If the value of that gift exceeds the annual exclusion—which sits at $18,000 for 2024 and $19,000 for 2025—you’re supposed to file Form 709. You won’t necessarily owe taxes immediately because of the lifetime exemption (which is over $13 million right now), but you’re chipping away at that limit.
There’s a bigger problem: the "Step-Up in Basis." This is the holy grail of tax planning. If she inherits the house after you pass, the "cost basis" resets to the current market value. If she sells it the next day, she pays zero capital gains tax. If you put her on the deed while you’re alive, she keeps your original cost basis. If you bought that house for $50k in 1980 and it’s worth $800k now, you just handed her a $750,000 taxable gain. That’s not a gift; it’s a burden.
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When Putting It In Her Portfolio Goes Sideways
Brokerage accounts and stocks have their own set of rules. Financial advisors often see clients trying to simplify things by making an account "Transfer on Death" (TOD). It’s basically a poor man’s trust.
It works, but it’s rigid.
Let’s say you’re putting it in her name via a TOD designation. If she’s going through a divorce or a lawsuit when you pass, that money lands right in her lap—and right in the hands of her creditors or ex-spouse. It’s unprotected. Experts like Martin Shenkman, a renowned estate attorney, often argue that "outright distribution" (just giving someone the money) is the least sophisticated way to handle an inheritance.
Instead, people are looking at "Lifetime QTIP" trusts or Spousal Lifetime Access Trusts (SLATs). These are fancy ways of saying you can give her the benefit of the money without giving her the legal headache of owning it outright. It keeps the assets in the family bloodline and away from outside claims. It’s about control, not just possession.
The Insurance Trap
Life insurance is the one area where putting it in her name actually makes a lot of sense, but people still mess up the "Incidents of Ownership" rule. If you own the policy on your own life and name her as the beneficiary, the payout is generally income tax-free. That’s great.
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However, the value of that payout is included in your taxable estate. If you’re wealthy enough to be worried about estate taxes, you shouldn't own the policy at all. You’d want an Irrevocable Life Insurance Trust (ILIT) to own it. Or, in some cases, she should own the policy on your life from the start. This keeps the death benefit out of the taxman’s reach.
Why "Simple" is Often Dangerous
We like simple. "Just put it in her name" sounds like a Saturday afternoon task. But the law doesn't care about your intentions; it cares about the paperwork.
- Creditor Risk: If her name is on the asset and she gets into a car accident where she's at fault, that asset is fair game for a judgment.
- Disability Issues: If she becomes incapacitated and the house is in her name, you might need a court-appointed guardian just to sell your own home or refinance the mortgage.
- The Medicaid Look-Back: If you're transferring assets to her to qualify for long-term care assistance, you need to know about the five-year look-back rule. If you put it in her name today and need a nursing home in three years, the government will penalize you. They'll see that transfer as an attempt to "hide" money.
Dealing with Digital Assets
It's 2026. We aren't just talking about houses and cars anymore. What about the crypto? What about the 10,000 photos in the cloud or the revenue-generating YouTube channel?
Putting it in her name in the digital sense requires more than a conversation. It requires "Legacy Contact" settings on Apple and Google. It requires a password manager with an emergency access protocol. If you don't set this up, your digital life is essentially locked in a vault that nobody can open, regardless of what your will says. Most states have adopted RUFADAA (Revised Uniform Fiduciary Access to Digital Assets Act), but it still requires you to take the first step in your settings.
The Psychological Weight of the Transfer
There is a weird power dynamic that happens when you start shifting wealth. Sometimes, putting it in her name is a way to show commitment. Other times, it's a way to offload the stress of management.
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I’ve seen families where the husband puts everything in the wife’s name because he’s "bad with money," only for the wife to feel overwhelmed by the sudden responsibility of managing a complex portfolio. It’s a lot. You have to talk about the "why" before the "how." Are you doing this for tax reasons? For love? For fear of lawsuits?
Nuance matters here. A good wealth manager won't just ask for a signature; they'll ask what you're trying to achieve 20 years from now.
Actionable Next Steps for Asset Protection
Don't just run to the courthouse and change a deed. That's a recipe for a tax disaster.
- Check the Basis: Before moving any appreciated asset (like stock or real estate), find out what you paid for it. If there's a huge gain, wait for the step-up at death.
- Review Beneficiary Designations: Your will does NOT override a 401(k) or life insurance beneficiary. If you put it in her name on the policy 20 years ago but your will says someone else, the policy wins every time.
- Use a Trust for Protection: If you’re worried about her being sued or going through a divorce, don't give the asset outright. Put it in a trust where she is the beneficiary.
- Update Your Power of Attorney: Ensure she has the legal right to manage "it" if you’re still alive but unable to speak for yourself.
- Talk to a Pro: Get an estate attorney and a CPA in the same room. The attorney knows the law; the CPA knows the tax bill. You need both.
Transferring wealth is an act of legacy. It's the ultimate "I've got you" move. Just make sure the move doesn't end up costing her more than it gives.
Proper planning isn't about hoarding; it's about ensuring that when you're putting it in her care, you're giving her a gift that is truly free and clear. Take the time to audit your titles and designations this month. It’s boring work, but it’s the difference between a smooth transition and a decade of probate court.