Planning ahead for your future retirement and estate planning goals might lead you to question whose name is listed on the deeds to homes.
Sometimes it can be the right decision to put your home into your children’s names, but this can also create grounds for family conflict and problems if you have multiple children.
One major reason to think carefully about putting your home in your children’s name is the potential for you to need Medicaid in the future. You could face a five year look back if you have a need for Medicaid for any time in the near future.
When you attempt to get support through the Medicaid program, assets that you gave away to your loved ones during the preceding five years could still be classified as yours, making it difficult for you to qualify for Medicaid.
If your children wait to inherit the house, you will pass along possible financial issues for them, including a new cost basis valued at the time of your death. If they were to choose to sell the property shortly after that, they would have no taxable profit.
Other issues can emerge if you pass on the title to your home, since your property could become involved in their problems if there is a financial claim, divorce settlement, or lien placed on the property, since they would own a share of your home. A lawyer who specializes in estate planning can give you more specific advice about whether or not putting your home in your children’s names makes sense.