For many California homeowners, protecting the family home and ensuring it passes smoothly to children is an important estate planning goal. While adding a child to the deed may seem like a simple solution, it can create serious legal, financial, and tax consequences.

Potential Advantage: In some cases, joint tenancy may avoid probate (Cal. Civ. Code § 683).

Key Risks: • Loss of full control over the property • Exposure to a child’s creditors, divorce, or lawsuits • Possible gift tax and Medi-Cal implications • Loss of a full step-up in tax basis, increasing capital gains taxes • Potential family conflict among heirs

Safer Alternatives:

Revocable Living Trust – maintain control and avoid probate

Transfer on Death Deed (Prob. Code §§ 5600–5696) • Community Property with Right of Survivorship for spouses (Civ. Code § 682.1) •

Proper will execution requirements (Prob. Code § 6110)

At Teuninck & DeBishoppe Inc., we help clients prepare estate planning documents designed to protect their home, their family, and their legacy.

Contact us: 408-209-3224