Many people think it is a good idea to put their child’s name on the house deed to avoid inheritance/estate taxes and probate or to prevent the property from being seized to pay for nursing home expenses.
To the contrary, co-owning real estate with your children may create more problems than it solves.
No “take backs”: When you add someone to your deed, the person acquires equal rights to the property. If you have a falling out, they have no legal obligation to release the title back to you.
Creditors, outsiders: A person’s primary homestead typically protected is from creditors, but when you add another person onto the deed, it might not be exempt from collection efforts.
Depending on how the deed is worded (e.g., “tenants in common”), your deceased child’s heirs could make a legal claim to your home.
Taxes: When you add another person to your deed, your home becomes a “gift” and you may be required to file a gift tax return if the gift exceeds the annual exclusion amount ($16,000 as of 2022).