The process of including a child’s name on property ownership documentation involves transferring a portion of the property rights. This action legally grants the individual named on the updated document shared or full ownership of the real estate, depending on the structuring of the conveyance. Examples include adding a son or daughter to a family home’s title.
Transferring property rights can be beneficial for estate planning purposes, facilitating smoother transitions of assets, and potentially minimizing future inheritance taxes. Historically, families have utilized this mechanism to ensure the continuation of ownership within the family lineage, providing security for subsequent generations. However, there are potential drawbacks to consider, such as relinquishing some control of the property and exposing the asset to the added individual’s liabilities.
