Should You Add Your Adult Child To Your Tampa Home Deed?
When creating an estate plan in Tampa, you may have considered adding your adult child to your home deed as a way to simplify inheritance. While this may seem like a quick fix to avoid probate, there are significant risks and legal consequences that come with joint ownership.
Before making this decision, get professional legal help. Our experienced Tampa estate planning lawyer explains what you need to know about putting an adult child on your Hillsborough home deed and other options available.
Joint Ownership and Deed Transfers in Tampa: What To Know Before Adding An Adult Child To Your Property
In Florida, many parents consider adding an adult child to their home deed as a joint tenant with right of survivorship. This means that when one owner dies, the surviving owner automatically inherits full ownership of the property, bypassing probate entirely.
While this can work in some cases, it’s not without potential drawbacks. Here’s what to know before adding your child to your Tampa property deed:
- It’s considered a gift under Internal Revenue Service (IRS) rules and may trigger gift tax reporting.
- You lose full control, as your child becomes a co-owner immediately.
- Your home could be exposed to your child’s creditors, lawsuits, or divorce proceedings.
- You may need your child’s permission to refinance or sell the property.
- It could disqualify you from Medicaid eligibility if not planned properly.
While putting your adult child on your home deed may seem like the best option for protecting them and avoiding Hillsborough County Probate Court proceedings, it can create long-term complications.
Safer Alternatives for Passing Down Your Tampa Home
Fortunately, there are other tools available under the Florida Statutes that allow you to pass your Tampa home to your child without exposing yourself to risk. These include:
- Enhanced life estate deed (Lady Bird deed): Lets you retain full control and automatically transfers the home at death.
- Revocable trust: Allows you to manage and transfer property without probate and retain flexibility.
- Transfer-on-death designation: Available in some states, but Florida does not yet recognize TOD deeds for real estate.
- Last will and testament: While this option requires probate, it lets you clearly state your wishes for the property.
Each of the above has pros and cons, depending on your specific situation. Our Tampa estate planning lawyer can help you weigh each option and make the best choice for everyone involved.
Talk to Our Experienced Tampa Estate Planning Lawyer Before Changing Your Deed
While it may seem simple to add your child to your Tampa home deed, doing so without legal guidance can result in tax issues, loss of control, or costly mistakes. A thoughtful estate plan offers greater flexibility and protection while still achieving your goal of leaving your home to loved ones.
At Bubley & Bubley, P.A., we help Hillsborough County homeowners explore more effective ways to transfer property and avoid probate. To protect yourself and your assets, contact our experienced Tampa estate planning lawyer and request a consultation today.
Sources:
irs.gov/businesses/small-businesses-self-employed/gift-tax
hillsclerk.com/court-services/probate-guardianship-and-trust
leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0732/Sections/0732.401.html
