Many taxpayers think they can save taxes by giving property to a close relative before they die. If you’re thinking about doing this, you could be making a mistake that can cost your heirs a substantial amount of tax money.

Take Ben Williams, for example. For many years, Ben had been the favored painting contractor in his home town. Inside or outside, from doorsteps to double-deckers, Ben Williams got the call when homeowners wanted a first class paint job at a reasonable price.

Ben wielded a mighty paint brush, but his climb up the ladder of success was modest. as he gave a fresh new look to house after house, Ben wondered when he could touch up his financial affairs and buy a house he could call his own. The opportunity finally came in 1990 when Ben, negotiating from atop his painter’s …