Is It Better to Put My Child on My House Deed, or Pass the House When I Die?

LamorindaLegalLearning

It’s WAY better to leave the property as an inheritance! Otherwise, your child will end up having to pay extra tax if the property has gained value since you bought it.

I’m curious about why you're asking this question. Are you concerned about the house having to go through probate court? If so, there’s another solution that may be right for you. It’s called a living trust. But make sure you talk with an attorney who is experienced with trusts to make sure that it’s set up properly.

If you have any questions about living trusts or how real estate is handled during the probate process, leave a comment below. 👇

If anything you’ve learned here concerns you, and you want to know more about what happens to your family and your assets when you die or become incapacitated, schedule a free 15-minute consult call with me here:

#LivingTrust #AvoidsProbate #Deed #Inheritance #Family #property

[MW-onft]

I don't know about other states but in Oregon there is something called TOD Transfer upon death. My parents used this so that they could will their home and property to my younger brother upon their deaths. The TOD also prevents anyone from contesting it.

[joyanderson]

Put it in revocable living trust!!!
I'm in Ohio
Medicaid out a lien on the house 😮(Daddy was in nursing home 3 yrs then passed so they waited until Mama died 2yrs later) i was supposed to inherit, my parents paid off. I had to go to probate court to get my piece bcuz Medicaid wanted the full value of the property $130K. So it went to auction & they got their money off the top & we (me, my bro & son) got $10K after lawyer fees!!!
It took me 2yrs fighting the State in court, could've been avoided!!!!😮😮😮

[huntermccoy]

Or we could just demand a end to the estate tax and inheritance tax. Buts let's just keep paying more for less.

[Number_]

To pass it when your dead. Once there on the deed. You become tenants in common. They can take out loans on the house, make changes, move people in and even sell their there part to a stranger and you will have no say in any of it. Of course they will have the right to stay as long as they live.

[msehruz]

My parents put everything in my name when I was 12. My Mom lived until 94 years old. I'm so grateful I didn't have to go through all that bs after she passed.

[janofb]

My mother was a sucker for door to door sales people. She once bought a $2000 Kirby vacuum from a door salesman that was too heavy for her to even use. I put the house in joint tenant right of survivorship the keep it from being stolen. When she died, her half stepped up, but I got to use 100% of improvements against my half, reducing the cap gains. Because my income was low that year, I paid no cap gains at all. So ask yourself, is the little cap gains you might pay worth it as insurance against someone stealing the house? yup.

[janety.]

Plus if your kid is on the deed and gets sued, the house is an asset they can go after = lose the home.

[snowbird]

I plan to do this in order to avoid probate. My grandfather gave my mom her inheritance in his later years too, no issues. My 3 adult kids are amazing, have their own homes, great jobs and are completely trustworthy.

[sharonh]

A deed upon death (also known as a beneficiary deed) has to be filed with the clerk and recorders office in order to deed the property to the children (or anyone) upon your death. In most cities/states this takes care of everything and once the property owner passes the inheriter takes the death certificate to the clerk and recorder and the property will be retitled under the new name and the clerk/recorder will record it in county records. The deed upon death has to be notarized and you can find samples online. Of course all of this has to happen before the property owner passes. Also, the city/county where the property is located usually has information on their website detailing what information needs to be included on the deed so it can be drafted correctly. Trying to pass property in a Will will almost certainly require probate. It can be stated in the will (in addition to the deed upon death) but the deed upon death is the correct way to handle it and makes the process so much easier.

[sharonh]

Aside from the benefit of the step up in value the other consideration is that if your child were to have some sort of judgment against them, for whatever reason, there could potentially be an attachment against their portion of the house, especially if it’s not their primary residence.

[bonwatcher]

Thanks for this video, I think a lot of people don't understand how big a deal that can be. My parents bought their house in the 60's for $39k and is worth about $400k, so doing that improperly by putting kids on the house deed would cost an arm and a leg in taxes.

[wells]

I'm so happy I made productive decisions about my finances that changed my life forever, hoping to retire next year.. Investment should always be on any creative man's heart for success in life

[Rodeo]

Only if you just want to sell it. If you plan on using the property, take the first option.

[fmagalhaes]

@BalamuthLaw, The inheritance option will work if the parent does a will or passes the property in another legal method. In my mother’s case, she left no written will or trust. If she had not named me as joint tenant with right survivorship, the property would still be in probate from 6Dec2023 until at least today 13Feb2024.

[thephoenix]

Thanks very much for your expertise in these matters

[wickedbird]

😮😮I have been told repeatedly, PUT IT IN TRUST.

[sarahstrong]

I knew someone who handed over ownership of their house to their daughter while they were still living there, so the daughter did not have to pay so much tax on it as if she had inherited it when her Mum died. They had always had a good relationship, so did not expect any problems. BIG MISTAKE!!! The daughter threw them out of their own home & they had to live in rented accommodation for the rest of their life & after the argument the daughter had no more to do with them.

[glorialangston]

Thank you for good information and presented to the point and briefly.

[randygrebel]

Very good point everybody should hear. Especially if children of aging parents want/need to sell the house to help pay for mom or dad's care. Check the numbers because mom or dad still carry the original cost basis. This was almost and issue with me. Also, check out California Prop 19 passed a few years ago to change the property tax inheritance law. This is a killer when you inherit a valuable home that is carrying a property tax value from the 70' or 80's. For us it will add over $7, 000 to the property tax for a home we will inherit. The law was created by the real estate industry to make people sell inherited homes as opposed to a rental.

[HughButler-lbzs]

One thing is left out of all these scenarios. That is the fact that setting up these inheritance thing a ma bobs costs money. A lot depends on how much the property is worth and how much it appreciates, and the effective tax rate when it is sold. What if it isn't sold but kept in the family?