Hi. Thank you for contacting Just Answer.
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.
Please click ACCEPT. If you have follow-up questions, please do not hesitate to ask.
Helpful resources for finding local legal counsel and legal information are www.martindale.com and www.findlaw.com
DISCLAIMER - This answer is not legal advice. No attorney-client relationship is formed. The information provided is for educational and entertainment purposes only. For specific advice regarding your situation, please consult a qualified attorney in your area. Please remember that we can only answer your question based on the information you provide. By using Just Answer, or by your clicking "Accept", you expressly agree to the foregoing and all of the following: (1) any communication between us is for entertainment purposes only; (2) there is no attorney-client relationship and you understand you are not consulting with me in any attorney-client manner; (3) neither of us are in an attorney-client relationship and will never claim to the contrary; (4) I may or may not be licensed to practice law in the state where you reside or where your legal problem arises and you understand it is your responsibility to obtain appropriate legal counsel with an attorney licensed to practice in the jurisdiction where you reside or where your legal issue arises (5) Pursuant to IRS Circular 230, please be advised that, to the extent this communication contains any tax advice, it is not intended to be, was not written to be and cannot be used by any taxpayer for the purpose of avoiding penalties under U.S. federal tax law - you may not use our communication to avoid taxpayer penalties imposed by the U.S. Dept. of Treasury); (6) by participating in a public forum, you understand and agree that you may be waiving any right to privacy, confidentiality and/or attorney-client privilege with respect to the matters discussed in the forum or with me. You understand and agree that any payment made by you is not consideration for any contract, nor offered for any services rendered by me on your behalf, but is a gift for my assistance to you. If you do not agree with these terms and conditions, then please let me know immediately.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).