Adding an adult child to the title of your home or other assets may seem like a way to simplify your estate plan. But joint ownership can create unexpected tax consequences. For example, adding your child as a joint tenant with right of survivorship may trigger gift tax reporting requirements and even gift tax liability. If you add your child to the title of property you already own, the IRS may consider it a taxable gift of half the property’s value. And when you die, the other half of its value generally will be included in your taxable estate. A properly structured trust may offer a more tax-efficient way to transfer assets while maintaining control. Contact us to discuss your options.
