Why it's not a good idea to add children as part of title to your property..?

Question

as asked...I have heard people say it's not good to do so..
Is this true or is this actually a good thing to do??..And if so, how many children should be added??..

thank you all for responding...wow, very fast..
to just wondering, do you mind explaining what do you mean with your 2nd reason:the inheriter(child) will not have a "step-up" when he/she wants to sell it??..thx...

Thanks for the feedback "Skip"-:). Yes, the children are adult children.

Answer 1

I am at a loss as to why you would want to do this. I have a few questions about this scenario, are the children minor children? It is not a good idea to add minor children to the title of your property. They are not of legal age to enter into a contract. If you decide to sell the property or refinance the property and they were still minors you would have to get someone to represent their interest as you could not do so since it would be a conflict of interest and they could not do it because it is illegal for minors to enter into any contract. If the person a court appointed to be the guardian for this transaction decided it was not in the childs best interest to refinance or sell the sale or refinance would not occur.

Adding adult children to your title could be just as bad, because they would have to sign and agree to any refinance or sell of the property. If they were to fall in love and give a portion of their share to someone else it could really get sticky and you would have undesirables on your title.

I don't know why you want to add children to the title now. If you want them to inherit the property with the least amout of difficulty make up a living revocoable trust, select someone you want to be the trustee of your trust. Put down exactly what and how you want the property to go once you are no longer here with us. The trust you make will keep the property from going through probate and a long court hearing, but mainly it keep the attorneys out of your business and your children get to keep what you want them to have and the way you want them to have it.

Now to properly make a trust we have discussed you will need to find an estate attorney, not only should he make your trust up and properly word it with your desires, he should enjure that the turst is funded. You may add a bank account to the trust if you so desire or other financial instruments as you deem necessary. don't let him talk you into being the trustee of the trust, you can select one of your children, a bank or someone in your family you trust. That is a decision that is yours to make.

This, in my opinion is the best way to protect your property and ensure your children's inheritance is protected.

Always check with your cpa, accountant or tax preparer on matters of this nature as well as any family attorney you might have.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 2

I assume we are not talking about minor children. You definitely don't want minor children on your property title. With adult children, there are a couple of major reasons why adding them to the title could be a problem. First, while you are alive, if you decide you want to sell the property they will have to agree to the sale and they may demand a cut. Second, if they are on the title, after you die they will lose the benefit of inheriting the property at a stepped-up basis, which will hurt them when they want to sell the property. Please talk to a lawyer about the best way to accomplish whatever goal you would have in putting your children on the title to your property. It is possible you could better accomplish the goal by creating a revocable living trust and putting the property into it. (Because it is revocable, you do not lose the ability to sell the property if and when you want to.) If you want your children to be able to manage the property if you are unable to, that could be accomplished with a power of attorney that would kick in under defined circumstances. Please do not add your children to your title without first seeking legal advice and without fully understanding the ramifications of your decision. Once you take this step, it is not easy to undo.

My husband had to on the title of a condo my mother-in-law purchased because she needed help qualifying for the mortgage. However, she was able to pay off the mortgage early, so he took steps to get his name off the condo (not every child would be willing to do this!), so that she would have the freedom to use this asset for her own benefit as needed. She has subsequently created a living trust to hold her assets and to direct their disposition in the future. This is really the best way for most people to go if you are trying to avoid the problems of probate.

Answer 3

I read back a few weeks ago that it was not a good ideal that you not because that they have to pay triple the taxes. If there is a death in the family. but call a lawyer and ask.

Answer 4

If your child falls in love with his new girlfriend and deeds her his interest in your property, you're SOL. Just create a trust and will it to them when you die.

Regards

Answer 5

It is not a good idea - what if your child/children get sued. There goes your house!