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Your Estate Matters… Should Your Child Be A Joint Tenant On The Deed To Your Home?

Issue 25.12

Should you list your child as a joint tenant with you on your home?  It is true that if your child survives you as a joint tenant on your home, your home will not have to be probated.  At your death, your child would immediately become the sole owner of your home.  Although owning property as a joint tenant with another person is probably the simplest method of transferring the property at your death, there are risks of owning your home with a child as a joint tenant.  Below are some of the disadvantages:

*A creditor of your child may try to seize the child’s interest in your home, or file a lien against your home. 

*Once your child’s name is on the deed to your home, you can only sell or refinance your home if your child cooperates with you and signs the necessary paperwork.  Your child can effectively cancel your own decision to deal with your home as you deem appropriate. 

*If your child survives you, that child may claim that you gave the house to him or her alone, and not to your other children.  Since that child is the only one named on the deed, your other children will have an uphill battle to clear the title.  One alternative is to name all of your children as joint tenants with you on the deed, but in that case only your surviving children will share in the home after your death.  If any child dies before you or before the home is sold, his or her interest in the home will be gone.  No interest in the home would “trickle down” to that deceased child’s children.  The home would be divided only between your surviving children.  In addition, you would have exposed your home to the creditors of all your children.

*If you and your child were to die in a common accident, special problems arise.  Finding out whether you or your child died first will determine who is entitled to your home.  If you live longer than your child, you will be the surviving joint tenant and your “estate” would own the house.  In that case your house would be given to your heirs.  If the joint tenant child lived longer than you, that child would be the surviving joint tenant, and when he or she died, that child’s estate would own the house.  In that case his or her spouse and children would be entitled to your home, not your heirs.  If it can’t be determined who died first, the likely result would be that one-half of your home would be included in your estate, and one-half in your child’s estate.

A costly and time-consuming lawsuit may be required to fix any of the problems listed above.  Usually the lawsuit attempts to establish that you placed your child on the deed to your home for convenience only, – that is, to avoid probate.  Avoiding probate is not worth the cost and family tension that would be created if one of these scenarios took place.

Unless you have truly exceptional circumstances and have discussed your situation with an experienced estate planning attorney, you should leave your home in your name only.  With a valid will and a simple probate procedure, or better yet, a properly prepared trust, you can ensure that your house is disposed of as you truly intend at your death.  You will also keep control of your home during your lifetime and avoid all of these and other potential problems.

Sean Sullivan is a shareholder in the firm Brindley Sullivan, PLLC.  Call (435) 673-9220 to arrange a time to meet with hi to discuss your estate planning needs.

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