It’s not uncommon for parents to add their adult children as joint tenants on a property to ensure that property passes from the parent to the child at the time of the parent’s death.
But although this is one way to ensure the right of survivorship, it’s not the only way – and it can lead to potential problems down the road.
For example, the IRS limits the amount of money that can be gifted from one person to another within a calendar year. If your child is afforded half ownership of your home and the half interest in the property is worth more than the IRS gift limit, you will be subject to gift taxes.
This is just one of several issues you could experience when adding a child to your title, so we recommend speaking with an estate planning attorney to determine which option makes the most sense for your situation