Are you considering making your home jointly owned with a child in order to avoid probate? Before you do, have you considered the 45% gift tax that you might be liable for? How about the capital gains tax problem you might be giving to your child? Are you willing to risk losing your home to your child’s creditors? Did you know that your son’s wife might become a part owner as well? Finally, are you certain that your child will allow you to sell your home if you ever want to?
Before you make your home jointly owned with your child, please consider the consequences carefully. There are likely better alternatives that will avoid probate while not having the potential negative consequences of joint ownership.
