Adding Your Child to Title, Real Estate or otherwise, May Not Be the Best Idea.
Some of my older clients think that putting their child on title to their home is a good idea. After all, they want their child to get the house after they die. However, putting kids on title may have unintended tax consequences upon the sale of the home. For example, if the child wants to sell the home, the child will have to pay capital gains taxes on the home. That is figured by using the "cost basis" to the home and the amount the house was sold. For example, if Mom and Dad bought the house for $100,000 and it sells for $800,000, the children will need to pay taxes on the gain of $700,000. However, if the home was inherited by the children, and sold soon afterwards, there might be no taxes at all!
Also, anytime you add a person to your assets, you have essentially added a "bull's-eye" to that asset. Why subject your asset to the problems of others?