Placing Adult Children on Title Can Jeopardize a Senior’s Home

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Very often, parents are tempted to add their children’s names to title to real or personal property. There may be different reasons why the parent is contemplating adding a child to the title. It may be to attempt to avoid probate or to allow that child to distribute the asset in accordance with verbal instructions upon the death of the parent. It may also be with intent to permit the child to pay bills if the parent is not available.

However, adding children to accounts or titles to property can have serious unintended consequences. First of all, this sort of transaction generally constitutes a gift. Depending on the size and nature of the transaction, a gift tax may be required and may be due and payable by the parent. Also, in the event the child has a creditor, judgment, or is sued, these parties may make a claim on the asset because now the child has an interest in it. In the event of dissolution of the child’s marriage, the child’s spouse is likely to seek to include the child’s interest among the assets to be considered in the divorce.


Senior Attorneys Offer FREE 1-Hour Consultations

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Many unfavorable situations can be avoided with the advice of a knowledgeable and reputable attorney who specializes in Senior’s issues, particularly will and trusts…Senior attorneys with whom we’ve worked personally have offered the courtesy of a 1-hour FREE consultation to homeowners over 50.
If you or a Senior you know can benefit from this free consultation, let us know!

 


ANNA MAY is a member of the Senior Advantage Real Estate Council and is designated as a Seniors Real Estate Specialist (SRES).

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2 Responses to “Placing Adult Children on Title Can Jeopardize a Senior’s Home”

  1. Greg Jones on January 23, 2012 at 2:10 pm

    Love and real estate…sometimes they mix, sometimes they don’t. You can get more info about this and other related issues by attending the Women’s Council of REALTORS monthly luncheon meeting 11:30 a.m. on February 15 at the Newark Hilton! You can register by going to http://www.wcrtricities.com

  2. Fred Falcon on January 25, 2012 at 3:04 pm

    Great article about adding a child’s name to parents title,good to know information.