Many parents and guardians have added their children to the title of their homes without getting legal advice beforehand. When you add a child to the title, you are opening yourself up to many potential risks and complications.
Many parents trust that their children won’t do anything that would negatively impact them. However, it is important to look past the emotion and see this for the bigger picture and transaction that it is.
It is one thing to have their personal guarantee, but there are unforeseeable circumstances where your child could put you in tough situations. For example, if your child gets a divorce, their spouse could claim half the value of the house. If they do not have the funds to payout, you could be on the hook – just to continue living in your own home.
If your child gets married and buys their own house, that will become their principal residence. So, if you choose to sell your house down the line, their share of the transaction will be taxable.
If your child declared bankruptcy or was to get into a car accident and were sued, you could lose your home.
There are many other situations that could put you and your house at risk when you add your child’s name to the title. It important that you speak to a professional about this before you make the final decision. We can help put you in touch with the best people. Contact us today.