Legal Question in Real Estate Law in California
what advantage in adding adult child to title of my house? does this avoid probate? does it affect credit or child in any way? what if i just have a living trust and don't put anyone on the title besides me?
2 Answers from Attorneys
It's a bad idea to add a child directly to title, or transfer property directly to a child. Their are all kinds of implications, including tax. The best thing you can do is find a competent estate planning attorney, who can advise you better, in person.
Mr. Roach is right. In 99% of situations it is a REALLY bad idea to just give a child assets, ESPECIALLY just granting them a title interest in real property. The tax consequences of that are always negative for the child to some degree, may make YOU liable for Gift Tax, and sometimes can cost hundreds of thousands of dollars in unnecessary capital gains and proerty taxes. If you have a mortgage, it may also be an event of default. A living trust is most likely the best answer, but not always. Talk to an estate planning attorney.