Estate Law Questions? Ask an Estate Lawyer.
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You can add your daughter's name to the deed of your house. You can hold the property as joint tenants with right of survivorship or as tenants in common. As joint tenants with right of survivorship, this means the property will pass to the survivor of you on the other's death ,by law. For example, if you add your daughter as a joint tenant with right of survivorship and you die first, she will receive the house. If you add her as a tenant in common, she will not inherit your share at your death except through a probate proceeding, and you would want a will or a trust that states where your share of the house passes.
There are some other considerations. Please remember if you add her to the deed, this is a gift and there could be gift taxes. However, each individual can make gifts of up to 1 million without paying gift tax, so this may not be a problem for you. Also, there are income tax considerations. When you die, your property gets a new tax basis. Say for example you bought your home for $100k and made no improvements, then this is your tax basis. If the house is worth $200k when you die, then this would be your new tax basis. When it passes to your heirs, they get this stepped up tax basis. This is important for capital gains taxes because if your heirs then sell the house for $200k, then there will be no capital gains taxes. However, if you put your daughter on title during her ife, then only part of the house may get a step up in tax basis, so this could result in some capital gains taxes if she sells it later.
You should consult a tax professional in your area before putting her on the deed. tHe easiest way to do this is just to execute what is called a Quitclaim Deed.
If there is a debt on the house when you die, the lender still has the right to go after the house as the security for the debt. Your daughter woul either have to pay off the loan or refinance it in her name.
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