Your inlaws want to add your child's name to their deed- how do you add a child to a deed?

Answer 1

You really should contact a lawyer to handle this for you, and here's why:

1. If the intent is for the property to stay in the family, your inlaws should establish a living trust. In the event of their death, there's no probate; the successor trustee (named by your inlaws in their trust) handles the business of the trust upon their death. The trust agreement can handle a number of issues concerning the dispositon of not only the property, but other assets (bank accounts, etc.)

2. If only one child is added to the property, then only that child will be on title. What will the other six have to say about that?

3. Depending upon the marriage laws where you live, if the property is deeded to the child, and that child is married, the spouse may have a community property interest and be entitled to half of the property.

4. The child who they add to the deed may have other problems that your inlaws don't know about. If he / she has judgments, federal or state income taxes due or is currently in some sort of litigation, those issues attach to the property.

Your inlaws need to think beyond keeping the house in the family. If the property is rented to a non-family member, will the entire family benefit from the rents? Who will be in charge of physical maintenance of the property? Are all the children equally responsible? Without there being anything in writing, the child that is deeded the property could simply sell it and keep all the proceeds.

Your inlaws need to have a discussion with their attorney and tax accountant. I can't tell you what's the best situation for you, but I can definitely tell you what happens when you don't get professional advice. Your inlaws need to be very clear on what their intentions are, then take the steps to insure their intentions are met upon their death.

The one thing I can tell you, with absolute certainty, is that you absolutely should not have any deeds recorded until you've consulted with your attorney and accountant.

You are fortunate that you're family members are all of the same accord. But my main concern is that your in-laws accomplish what they intend, which is keeping the house in the family. You should have them go to an attorney and CPA, then get everything in writing. If everyone gets along as you say, then they should all be cool with this.

The real benefit of getting legal and tax advice is knowing that their wishes are being carried out, and they'll be able to find things that may have been missed or not considered. Otherwise, all their great plans could fall apart. I think a revocable trust would be the way for them to go, but take an attorneys word, not mine. And, to save you time and money, be very clear on what it is you're trying to accomplish so you'll give them a road map to accomplish their goals. I recommend going to MSN.COM and looking under their money section. They have all kinds of information about estate planning...it would be a good starting point. Good luck!

Source(s):20 years experience as an Escrow Officer, undoing the damage inflicted by well-meaning parents.

Answer 2

Children usually acquire an interest only by inheritance.

Deeds should always be drafted by a professional.

You can execute a deed that transfers your property to your minor child, however, it's not a good idea. Adding a child's name would actually complicate the title to the property and could result in legal costs down the road. A problem would arise if the property must be sold or if you decide to take the child's name "off" the property. At that time you will encounter legal difficulties.

Generally, if the property must be sold, a guardian would have to be appointed by a court to sell the property for the minor. Remember that the property will be considered the child's property. The guardian will need to obtain a licensefrom the court. The court will require the appointment of a 'guardian ad litem' who would need to review the proposed sale and report back to the court whether it is in the best interest of the child. All those appointees would need to be paid for their services. There would be court costs and attorney's fees if you need to hire an attorney. After the sale, the court would require that the proceeds be supervised on behalf of the child until they reach the age of eighteen.

In some states, a child can refuse the property when she comes of age and the conveyance could be voided. That might cause other problems.

If nothing will be done with the property until the child becomes an adult, and it's a friendly conveyance (not one carried out to defraud or to purposely encumber the title), then there is no prohibition against it in Massachusetts. However, if the conveyance is done to avoid creditors the court can void the conveyance and the creditors can seize the property.

Once the child becomes eighteen, they will become the legal owner and the relationship may not be so friendly. They may refuse to convey the property back unless they receive compensation. Also, the property will become vulnerable to their creditors.

You should consult with an attorney who can review the situation and explain the options.