Replies to '01/18 "Fighting Over the Will"'

When you put your daughter's name on title with you, you give that person a share of current ownership in the property.  That means: 

• if she gets divorced, her spouse can make a claim to share in her interest in the land.
• if she dies, her estate would include her interest in the land.
• if she has creditors that she doesn't pay, they can register a lein against the land.  
• if you want to take a loan against the land or sell it, you need her consent.
• if you change your mind about who you wish to leave your land to, you can only change it if she is willing to sign a transfer of her interest back to you.

As you can see, this is a big step and is very risky.   There are times when it does save time and money though.  Before you take such a drastic step, please ensure that there really would be a substantial tax savings (check that with an accountant) and determine if there is a way to accomplish the savings without changing ownership of the land.   

If you decide to put your daughter's name on your land,  consult a lawyer about getting a trust document for your daughter to sign first that establishes that the transaction was for estate planning purposes only and is not intended to give her any rights to the land during your lifetime. The document should also include a promise from your daughter that would be binding on her estate to transfer the land back to you at any time at your request.