It is generally not recommended to add your children to the title of your home, even if they are the kindest, most caring children in the world.
Here are just a few reasons why this is not a good idea:
- Adding your child to the title gives them a legal interest in the home. If your child wants to sell the property, they could force the sale of the property through litigation even if you don’t want to sell the home.
- Adding your child to the title also opens up the possibility that your child’s creditors could file a lien for unresolved debt against the property.
- There may be tax implications (capital gains tax) for your child if they’re added to the title of home during your lifetime and sell the home after your passing. Your child will need to seek guidance from a tax professional to determine if they owe capital gains taxes in this scenario.*
- There are other financial reasons why this isn’t a good idea. For example, it may impact their ability to acquire financing, or they may be required to file a gift tax return with the IRS.*
There are alternate ways to ensure your child is the beneficiary of your assets, including your home. This is where estate planning documents come into play. Your options include:
- Deed Upon Death: conveys the title to the property to named beneficiaries after the homeowner’s death
- Living Trust: assets are designated for your benefit during your lifetime, then transfer to named beneficiaries after your death
- Last Will & Testament: you specify how you want your assets distributed after your death
Bottom Line: You worked hard for your home, and want to protect it so you can leave your assets to your children. Estate planning is the key to protecting your assets, potentially avoiding a messy probate, and not leaving your heirs guessing how you want your assets divided. We recommend you seek professional legal help with your estate planning needs. For legal assistance contact:
State Bar of Nevada Lawyer Referral Service
702-382-0504 | bit.ly/nvlawyer
Southern Nevada Senior Law Program
702-229-6596 | snslp.org
*Legal Aid Center of Southern Nevada does not offer guidance related to taxes/tax filings. Please seek the guidance of a reputable tax professional.
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