Author Topic: Adding to my Son to Home Title??  (Read 2148 times)

drumstache

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Adding to my Son to Home Title??
« on: August 04, 2017, 02:52:17 PM »
I'm single.  House is paid off.  Son is 19.

Just want to add him as co-owner of the house, so there are no hassles if something happens to me.

Trying to avoid paying an attorneys fee to this, would think it would be easy as filling out a form?

Frankies Girl

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Re: Adding to my Son to Home Title??
« Reply #1 on: August 04, 2017, 03:10:38 PM »
Don't do this. Just make sure he is named as you heir and he inherits all of it. If you make him a co-owner, not only do you have the complications if there is a falling out or marries someone that could convince him to force a sale, but you lose the amazing heir benefit of stepped up cost.

Stepped up cost means the property value "steps up" to the date of the original owner's death date, and will save potentially thousands in taxes. Do look this up as it could be a real mess if you go ahead with the plans to add him. ..

cchrissyy

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Re: Adding to my Son to Home Title??
« Reply #2 on: August 04, 2017, 04:13:16 PM »
if by "hassles if something happens to me"  you mean inheritance, then handle it in a will or living trust.  If you meant that you want him to manage it along with your other financial or medical needs if you ever became incapacitated, well, then you need a power of attorney.
but no, don't put him on the deed. one of the best things about inheriting a house is the cost basis resets to the date of death, meaning you can sell it without any taxable gain. it's much better for him to have that higher cost basis, no matter whether it goes on to be sold or lived in.

GizmoTX

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Re: Adding to my Son to Home Title??
« Reply #3 on: August 04, 2017, 04:25:12 PM »
As others have said, do NOT put your son on your house title or bank accounts or anything else.

You do need to execute Powers of Attorney documents for both health & financial issues; these are inexpensive & should be 'springing' in that they each require a doctor to certify that you temporarily or permanently cannot handle your affairs. Not having this in place means that your son will have to spend a considerable amount plus time delay to help you out. You also need at least a will -- this is where your son should inherit the house & anything else you want him to. Putting your house into a revocable trust avoids probate & expensive attorney fees -- check your state laws to see if you will benefit from setting one up.

Catbert

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Re: Adding to my Son to Home Title??
« Reply #4 on: August 06, 2017, 04:19:09 PM »
Agree with everyone else:  Don't do it.

See if you state has a Transfer on Death option for real estate.  Exactly what it sounds like.  May be called something different in your state although not all states have this option.  California does.


Finances_With_Purpose

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Re: Adding to my Son to Home Title??
« Reply #6 on: August 06, 2017, 11:25:18 PM »
Agree with the others.  There can be tax consequences, too: it may look like a taxable gift rather than inheritance.  Just a lot of reasons not to do this.  At the very least, consult your CPA first or a lawyer.  (CPAs tend to be cheaper and familiar with the tax implications of things, so I default towards CPAs for such things.) 

drumstache

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Re: Adding to my Son to Home Title??
« Reply #7 on: January 15, 2018, 09:36:40 AM »
Meant to post a thanks to this earlier.

Appreciate everyone's replies.  Good info, much appreciated!