In our years of practice, we have come across several cases that involve changing and/or adding other people to a client’s home deed. Remarkably most of the cases we’ve encountered involve families. Most times it’s the kids who decide that the parents are getting old and it might be a better idea to have the deed transferred to their name. I know you are probably thinking that cases involving family are often easier to solve as long as an agreement is reached.
Far from it my friend! Cases involving family can get very complicated.
The question remains, why should you never add someone else’s name to your home’s deed? Well, the short answer is that the moment someone else’s name is in the property deed, the property now belongs to them. Even if you’re living there you are just a tenant and you are at risk of eviction.
Doesn’t matter if you are the one who paid for the home, immediately the details in the deed read someone else’s name, they are the legitimate owners. Some people have lost their homes to family members who decide to be conniving and even toxic in some situations. However, because the name in the deed reads someone else’s name, there is almost nothing that can be lawfully done.
Moreover, the moment that the deed is transferred to someone else’s name, there are often some tax implications involved when it is eventually sold. The better solution is to put the property in a trust and add the names of the kids as beneficiaries.
This will avoid the probate and the kids will receive a step up when the estate is sold. It is a better way to circumnavigate the high tax implications involved, the probate, and even the loss of property to a rogue family member. Dial into the conversation on our podcast here for the full details regarding this and much more.
Get in touch with Voyant Legal for more information about estate planning. We believe that estate planning is not only about transferring your assets, and we are more than delighted to help you start planning early.