There are many options when it comes to estate planning. These options can often seem overwhelming and unnecessary. This can feel especially true when dealing with relatively small estates.<\/p>\n
In an attempt to avoid the estate planning process, many consider placing their children on the deed of their home. The thought is this: The home is the only asset they have of great value and this will allow the property to go to their children upon their death without dealing with the courts. It is also seen as a relatively cheap alternative to estate planning; making it even more appealing. However, under most circumstances, this is ill advised and can have disastrous consequences.<\/p>\n
The main problems with adding a child to your deed are:<\/p>\n
Creditors: As the largest asset that most people own, a home is very valuable. It is often more than just a place to live but is used as collateral to pay for college, weddings, and\/or retirement. The home is also one of the first assets creditors go after when a debt is owed. Once a child is placed on a deed, that property becomes open to that child’s creditors. Even if the child has little to no interaction with the property (i.e. does not live there or contribute to mortgage payments) creditors will still have rights over the property.<\/p>\n Though many believe their children to be financially stable, the future can be unpredictable. Unforeseen events, including sickness, can lead to financial instability. This instability can jeopardize your property and leave you with little choice or control. Your children’s creditors may then end up with rights to the equity you have developed, putting you into financial situations you are ill equipped to handle or recover from.<\/p>\n Control: Once placed on the deed, a child will have an interest in the property. This means that they will need to sign off on any decision made by their parents; whether that is refinancing, selling or otherwise. Though for most this will only be a slight inconvenience, for some it can become more.<\/p>\n If a child decides they do not wish to cooperate, wish to have more control in what happens to the property or wish to gain something financially from the property, a child may have rights to do so. Though the problems may be fixable, it could cost an incredible amount of time and money in court.<\/p>\n Spouses We all hope that we love, or at least like, our child’s spouse and that their love lasts forever. Unfortunately, for many that is not the case. And, as a child has a degree of control over the property once they are on the deed, so will their spouse.<\/p>\n This control can come in the form of influence over the child or through divorce. If it does turn out that the parents do not care for the spouse, this could lead to animosity that is taken out on the property. Also, in the event of divorce, the property may be up for debate when assets are split.<\/p>\n Conclusion It is only natural to want to find the quickest and cheapest way to accomplish your goals. However, it is important to understand the risks involved in those decisions. For most, their home is the most valuable asset they own and decisions regarding title should not be taken lightly. Always consult an Attorney prior to making decisions regarding title, to fully understand your options and the consequences of any action.<\/p>\n","protected":false},"excerpt":{"rendered":" There are many options when it comes to estate planning. These options can often seem overwhelming and unnecessary. This can feel especially true when dealing with relatively small estates.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[4,450,3,41,306],"tags":[],"class_list":["post-37431","post","type-post","status-publish","format-standard","hentry","category-estate-planning","category-home-ownership","category-real-estate-law","category-title","category-trusts"],"jetpack_featured_media_url":"","jetpack-related-posts":[{"id":173,"url":"https:\/\/blog.topbev.com\/?p=173","url_meta":{"origin":37431,"position":0},"title":"Massachusetts Tenancy by the Entirety and Declaration of Homestead–A Basic Primer","date":"June 24, 2010","format":false,"excerpt":"In Massachusetts, and possibly in other states as well, significant protection is given to the non-debtor spouse if the married\u00a0couple elects to take title as \"husband and wife, tenants by the entirety\". There are other advantages to tenancy by the entirety, such as avoiding probate, but the principal advantage is\u2026","rel":"","context":"In \"declaration of homestead\"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":966,"url":"https:\/\/blog.topbev.com\/?p=966","url_meta":{"origin":37431,"position":1},"title":"Massachusetts Court of Appeals rules that a deed notarized improperly is unenforceable?","date":"October 3, 2014","format":false,"excerpt":"The Land Court ruled that the deed was unenforceable because it was improperly notarized. It was not sufficient that Ethel had signed the deed. She had not confirmed before the notary that the deed had been her free act and deed. The deed because of the invalid acknowledgement was not\u2026","rel":"","context":"In "Estate Planning"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":907,"url":"https:\/\/blog.topbev.com\/?p=907","url_meta":{"origin":37431,"position":2},"title":"Bank of America\u2019s Exclusive “Deed in Lieu” Pilot Program","date":"March 27, 2012","format":false,"excerpt":"Bank of America launched an invitation-only \"deed-in-lieu\" pilot program. This program will permit struggling homeowners to convey the deed to their property to Bank of America in exchange for a lease to remain in their home.","rel":"","context":"In "Estate Planning"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":899,"url":"https:\/\/blog.topbev.com\/?p=899","url_meta":{"origin":37431,"position":3},"title":"Should I draft a Will or should I be placing my assets in a Trust?","date":"March 9, 2012","format":false,"excerpt":"When it comes time for you to devise your assets, you may be asking yourself, \"Should I draft a Will or should I be placing my assets in a Trust?\" A Trust in most instances does not replace a Will. An effective Estate Plan requires a Will. Whether there is\u2026","rel":"","context":"In "Estate Planning"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":373,"url":"https:\/\/blog.topbev.com\/?p=373","url_meta":{"origin":37431,"position":4},"title":"Purchasing Real Estate from an Estate–Get Some Legal Help Very Early in the Game!!!","date":"July 9, 2010","format":false,"excerpt":"More often than not, a purchase from an Estate in Massachusetts can offer a \"bargain price\" element to the purchaser who is involved. The heirs may be anxious to \"liquefy\" their inheritance, and do not want the inconvenience of having to maintain the real estate in question, including insurance and\u2026","rel":"","context":"In \"executors\"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":862,"url":"https:\/\/blog.topbev.com\/?p=862","url_meta":{"origin":37431,"position":5},"title":"The New Massachusetts Homestead Law takes effect March 16, 2011.","date":"March 13, 2011","format":false,"excerpt":"The long awaited and much needed revision to the Massachusetts Homestead Law will be taking effect on March 16, 2011. It can be found at Massachusetts General Law Ch 188 \u00a71-10.","rel":"","context":"In "Estate Planning"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/blog.topbev.com\/index.php?rest_route=\/wp\/v2\/posts\/37431","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.topbev.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.topbev.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.topbev.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.topbev.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=37431"}],"version-history":[{"count":4,"href":"https:\/\/blog.topbev.com\/index.php?rest_route=\/wp\/v2\/posts\/37431\/revisions"}],"predecessor-version":[{"id":37436,"href":"https:\/\/blog.topbev.com\/index.php?rest_route=\/wp\/v2\/posts\/37431\/revisions\/37436"}],"wp:attachment":[{"href":"https:\/\/blog.topbev.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=37431"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.topbev.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=37431"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.topbev.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=37431"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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