I just added my children to the deed to avoid probate. What is all this fuss about Living Trusts?
“Adding children to the deed for a $10.00 “consideration” is a gift subject to gift taxes. Please check with your accountant for the gift tax consequences of “adding” your children to the title. More importantly from a legal standpoint, once you’ve made your children joint owners, you are already sharing the property with them. That means they share in the decisions about the property – sales or mortgage. You effectively lose control of the property. You also share each other’s liabilities for divorce, litigation, auto accidents and bankruptcy. If any of these things happen, you may be buying your property all over again to bail your children out. Adding your children to the title can be a very expensive way to avoid probate for your property. The Trust ensures that probate is avoided, plus you remain in full control and your property is not subject to any future problems your children may have. If you have already added you children to the deed, consult your law firm about he possibil
