You can add your daughter by putting her on your deed, and she becomes co-owner of your home with right to survivor. This will avoid probate, but has a couple of twists to it:
1-you will have to file a "gift tax" return, since I'm sure your home is worth more than $14,000. Please note, YOU HAVE A LIFE TIME GIFT TAX EXEMPTION OF $5 MILLION+ so you will not owe any gift tax. You just have to file the form to tell the IRS that you 'used" say, $50K for example, of your lifetime $5 Million exclusion.
There are other considerations also. Once your daughter's name is ***** ***** deed, her creditors may attach a lien to your property. Also, your daughter's tax basis in the property, should she ever sell, is the same as yours. (Your original purchase price plus any improvements) Many homes are worth considerably more today that what you originally purchased it for. If this is the case, then adding your daughter to your deed could see her owing tax on the home if she sells it.Please see below:
You can leave your home to your daughter in your will. An inherited home vs being added to the deed has it's consideration also. Although your daughter would inherit the home at it's current value as opposed to what you purchased it for, it could mean that your home would be subject to probate. Please see below:
I have set up a living trust that allows my children to inherit my home at it's Fair Market Value on my death, and avoids probate, and gift tax. Please see below;
If you have found my answer helpful, please rate positive by clicking on the stars.
It is ONLY through positive ratings that we are compensated for our time and knowledge.
Thank you for choosing justanswer.