Probate can become complicated when an estate has complex assets, such as real estate. You may want to help your family avoid probate and protect your legacy by circumventing the probate process. When it comes to real estate, you may consider putting a loved one, such as a child or sibling, on the dead of your home.
While adding your family member to your deed could potentially avoid probate, it may not be the best option. Before changing your deed, you may need to consider your legal options:
Placing a family member on your deed may not be so simple
In short, placing your family member on your deed could make them a co-owner. This may seem like the right choice, but there are some dangers to adding a family member to your deed just to avoid probate.
First, the person being added to the dead may be required to pay a gift tax for their share of the home. In 2025, the gift tax exclusion is $19,000. Exceeding this gift tax would require you to fill out IRS Form 709 to report the extra gifts to your family member. Gifting above the annual limit may lead to additional taxes and a reduced lifetime gift tax exclusion.
Second, the co-ownership of a home can create several issues. If your family member is added to the deed, they have the right to sell their share of their half of the home. This could create issues if someone else ends up listed as a co-owner of your home. There could be issues if your family member is in debt, leading to a lien on your home or if the house is included as an asset in a divorce.
If you do decide to add a loved one to the deed of your home, it may be crucial to list all owners as joint tenants with the rights of survivorship. The right of survivorship means each tenant has the right to inherit the other half of a property if the other tenant passes away. However, joint tenants with the right of survivorship could still lead to the issues listed above.
You may want to reach out for legal guidance to explore your estate planning options as a homeowner. You can learn more about how you can avoid probate and safely pass assets onto your loved ones.