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Put Parents names on house deed?

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  • Put Parents names on house deed?

    In the process of buying a new house. Single, no kids.

     

    Should I put my parents names on the deed? Will it help protect my house in the event of a lawsuit compared to if only my name was on the deed?

  • #2
    This is going to be state specific regarding homestead exemptions and lawsuits. One thing it does is open them up to unnecessary liability.

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    • #3
      Could be  a problem if you have siblings.

      Also tax issues for capital gains depending on how you title the house .  Probably not worth the risk.

      Talk to a lawyer.

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      • #4
        Probably not and no

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        • #5
          Adding your parents to the deed might make the house less exposed in a lawsuit against you, but even that issue depends on quite variable state law.

          Have you considered any of the downsides? One example, say your parent needs nursing home care, and now the value of the house has to be applied to payment for that care?

           

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          • #6
            Ugh sounds complicated.

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            • #7

              • You would be making a gift to your parents unless they are chipping in on the cost and paying their share of the mortgage.

              • As @CordMcNally said, depends on your state laws re: asset protection.

              • You would lose 2/3 of the capital gains exemption of $250k when you sell.


              How many physicians do you know or have you heard/read about who have lost their homes in a lawsuit? It is far more likely that you will need to use the LTCG exemption than that you will be exposed to the loss of your house in a lawsuit. It is difficult to imagine a situation in which I would advise a client to do this.
              Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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