Putting your child’s name on the deed of a home may avoid probate, but it is almost always a very bad idea for many other reasons, according to My Prime Time News in "Deeds and Probate Avoidance."
Many people are informed by some unwitting person that putting their child’s name on the deed to their home will avoid probate and protect the home from being taken away if the parent needs to go into a nursing home. This is one of the most common and, unfortunately, worst pieces of advice that spreads across America like a plague.
There are many reasons why putting a child's name on the deed to your home is generally a bad idea, but here are some of them: By putting your child’s name of the deed to your home, the home becomes an asset of the child and any creditors the child has can put a lien on the home. Doing so also has the potential for significant adverse income tax consequences for the child should the home be sold after you pass away. And changing the ownership of your home will also most likely be treated as a transfer subject to penalty for Medicaid qualification purposes.
An experienced New Jersey elder law and estate planning attorney can advise you on creating an estate plan that avoids unnecessary risks.
Reference: My Prime Time News (Jan. 29, 2018) "Deeds and Probate Avoidance."