Adding My Kids to the House Deed- Is It Possible and What Are the Implications-

Can I Add My Kids to My House Deed?

Adding your kids to your house deed can be a significant decision with various implications. It is a legal process that involves transferring a portion of your property interest to them. Whether you are considering this step for estate planning, financial security, or simply to include your children in the ownership of your home, it is crucial to understand the process and potential consequences. In this article, we will explore the reasons for adding your kids to your house deed, the legal aspects, and the steps involved in making this change.

Reasons for Adding Kids to the House Deed

1. Estate Planning: Including your children in the deed can be a strategic move in estate planning. It ensures that your children inherit the property without going through probate, which can be a lengthy and costly process.

2. Financial Security: Adding your kids to the deed can provide them with financial security, especially if they are facing financial challenges or are unable to secure a mortgage.

3. Joint Ownership: Including your kids in the deed makes them joint owners of the property, allowing them to have a say in decisions regarding the property’s use and future.

4. Gift Tax Considerations: Adding your kids to the deed can be a way to gift them a portion of your property, potentially reducing your taxable estate.

Legal Aspects of Adding Kids to the House Deed

Before proceeding with adding your kids to your house deed, it is essential to consult with a real estate attorney or a legal professional. Here are some legal aspects to consider:

1. Title Types: Understand the different types of property titles, such as joint tenancy with right of survivorship, tenancy in common, and tenancy by the entirety, and choose the one that best suits your needs.

2. Property Value: Adding your kids to the deed can affect the property’s value for tax purposes. It is important to consider the potential tax implications, including property taxes and estate taxes.

3. Liability: Joint ownership can also mean joint liability. If one of your children incurs debt or faces legal issues, they could potentially affect the property.

4. Divorce or Separation: Including your kids in the deed can complicate divorce or separation proceedings, as the property becomes an asset subject to division.

Steps to Add Kids to the House Deed

1. Consult with a Lawyer: Seek legal advice to understand the implications and ensure that the process is carried out correctly.

2. Prepare the Necessary Documents: Gather all the required documents, including the deed, title search, and any other relevant legal documents.

3. File an Affidavit of Joint Tenancy: In some cases, you may need to file an affidavit of joint tenancy with the local recorder’s office.

4. Record the Deed Change: Once the necessary documents are prepared, record the change with the local recorder’s office to update the property’s title.

5. Review the New Deed: Ensure that the new deed accurately reflects the change in ownership and that all parties involved understand the terms.

In conclusion, adding your kids to your house deed can be a beneficial move for various reasons. However, it is essential to approach this decision with careful consideration of the legal and financial implications. Consulting with a legal professional can help you navigate the process and make informed decisions.