Helping Your Kids Buy a Home: Estate Planning Strategies for Georgia Parents

Trusts can earmark funds for a home purchase with rules you choose, like your child’s age, price limitations, primary residence only, and trustee approval.

Helping during your lifetime should be documented and reflected in your estate plan to avoid family disputes.
If your kids are minors, your plan matters. Probate and conservatorship rules can kick in above certain thresholds.
Tax planning matters, especially gift reporting and the difference between gifted vs. inherited property basis. Consult a tax attorney to check your plan’s efficiency.

Today’s housing market has turned saving for a down payment into a multi-year marathon. A 2025 analysis found that it took the average household about seven years to save for a typical down payment.

For that reason, many of my clients come to their estate planning meeting with questions about how they can help their children buy a home one day, in a way that keeps things fair between siblings or across blended families, protects their children’s inheritance, and protects any purchased property from creditors or non-family members as much as possible.

This is where smart estate planning is essential.

Can I use a trust to help my child buy a house in Georgia?

Yes—a trust is often the cleanest way to set aside money for your child with guardrails to ensure it’s used in the way you planned. It can authorize your trustee to release funds specifically for a first home purchase, and can even pay the escrow or title company directly.

Within a trust, you can include instructions like:

The maximum dollar amount allocated to each child or purchase
Dollar matching based on what your children save toward their down payment
Where funds can/can’t be used (e.g., for the down payment and closing costs or not for an investment property)
When distributions are permitted based on your child’s age
Whether the money goes to your child or directly to the title company

In short: trusts offer additional protection that wills simply don’t.

Should I gift money or loan it to my child for a down payment?

If you’re helping your adult child buy a home while you’re still around, the best way to do it depends on your goals. You can opt for the simplest route (a gift), or plan for your child to have “skin in the game” with a repayment structure (a loan). Either way, it’s important to document your decisions and align them with your estate plan. If you gift down payment funds, lenders commonly require a gift letter and documentation of the transfer.

Here’s a quick recap of the pros and cons of each method to help you decide:

Gift: Gifts are simple and often emotionally easier, but can create sibling resentment unless your estate plan clarifies whether the gift is an advance on the child’s inheritance or an “extra.”
Loan: Loans make it easier to keep things “fair” but require structuring and administration (for example, the promissory note, repayment terms, what happens if you pass away before the loan is repaid, debt forgiveness terms, etc.).

Whatever you decide, it’s important to document your decisions in writing as part of your estate plan.

How to set up an estate plan so minor children can buy a home later

The best way to do this is to use a trust-based plan so your money isn’t forced into probate, and your child isn’t handed full control too young. In Georgia, probate court conservatorship requirements can apply when minors receive assets above a certain threshold, so simply leaving your child money can backfire. Also, custodial rules under Georgia law typically transfer to the child at age 21, which may or may not match your ideal timeline for a property purchase.

If I help my child buy a home during my lifetime, how does it affect my estate plan?

Any major lifetime help should be reflected in your estate plan to ensure you plan efficiently for tax consequences and keep the peace among siblings and other beneficiaries. The most common approaches include an outright gift, loan, co-purchase or shared equity, and a gift of equity. (Note: if you’re selling a home to your child below market value, documentation is key.)

Tax considerations when helping your child buy a home

Georgia has no state-level inheritance or estate tax, so the only tax implications to worry about are federal ones. Consult with a tax attorney on annual gift exclusions and lifetime caps to ensure that your decisions align to preserve your wealth for your family. Gifted property basis calculations can be different from an inherited property basis, so it’s critical to coordinate estate planning with tax advice when making major gifting/home buying decisions.

Frequently Asked Questions

Is it better to gift a down payment or leave money in a trust?

If you want guardrails around your gift, such as trustee approval, staged access, or age limits, a trust is the better fit. Trusts can also better protect your child’s inheritance from other family members and prevent funds from being tied up in probate.

What if my child gets divorced after I help them buy a home?

If you gift cash directly, it may be harder to control what happens later. Trust-based planning can sometimes provide more protection and clearer documentation of intent. If you’re worried about divorce risk, it can make sense to explore options like trust distributions paid directly to closing and trust terms that are designed to reduce exposure.

Can my trustee pay the title company directly?

Yes. Many families prefer this approach because it keeps the home purchase funds tied to their intended purpose and reduces the risk of misuse. Your trust can authorize the trustee to pay a closing attorney or title company directly or reimburse documented expenses, rather than distributing a large sum directly to your child.

Can I treat help for one child as an advance on their inheritance?

This is a common estate planning move that’s sometimes called “equalization planning.” The key is to document your intent clearly so your executor or trustee can administer it without making guesses. This also protects sibling relationships and reduces the odds of conflict.

For more on how to use your estate plan to protect your children after you’re gone, download our free planning guide.