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). Consult with an attorney to discuss deeper disadvantages.

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.