Legal Ramifications of Adding Children
For those who are considering the question "Should I put my children on the title of my house," there are legal ramifications that must be taken into consideration. These conditions include:
A) Your current mortgage - In most cases, if you have a mortgage on your property, you will need to gain authorization from your mortgage lender to add a second party to your deed. In some cases, this may require that you refinance your property. Although a quit-claim deed may be prepared to deed the home, your lender does not have to allow this deed.
B) Legal or financial problems - If your child (or children) have any outstanding legal obligations, or they have financial problems, adding them to the deed of your property could put your home at risk. After you have added a child to the deed of your property, they become a co-owner of the property and any claims against them could result in a lien on the property.
C) Family disputes - While we do not like to think about family disputes, placing your children on the property deed could mean that you lose any say in how your property is divided in the event if your death. For example, if you have three children and only add one child to the deed, your other two children have no right the property (note: this is in the case of joint tenancy with rights of survivorship which most deeds encompass).
D) Sales considerations - If you decide to sell your home after you have added your child on to the deed of your property, in order to sell, your child (or children) would have to sign off on the sale.