{"id":231978,"date":"2025-07-02T12:26:09","date_gmt":"2025-07-02T12:26:09","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/231978\/"},"modified":"2025-07-02T12:26:09","modified_gmt":"2025-07-02T12:26:09","slug":"should-adult-children-be-added-to-parents-real-estate-title","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/231978\/","title":{"rendered":"Should adult children be added to parents\u2019 real estate title?"},"content":{"rendered":"

Open this photo in gallery:<\/a><\/p>\n

One of the main reasons people consider putting their child on title is to avoid probate tax.Nuthawut Somsuk\/Getty Images<\/p>\n

Rising housing costs and a sharper focus on estate planning have aging parents wondering if they should add their adult children to their real estate title before they pass away \u2013 a move that could help the asset bypass probate.<\/p>\n

However, advisors say the strategy comes with risks, such as parents losing control of the property, feuds between siblings and potential tax implications, and requires careful consideration.<\/p>\n

\u201cParents should ask themselves, \u2018What do I hope to accomplish by putting my child on title with me?\u2019\u201d says Akua Carmichael, vice-president of estate planning and services at Estate Stewards Inc. in Toronto.<\/p>\n

\u201cAnd looking at my other assets, is putting my child on title going to frustrate my estate-planning goals, or will it help me accomplish them? It\u2019s really about understanding some of the potential consequences and whether you\u2019re comfortable with them.\u201d<\/p>\n

The pros of putting children on title<\/p>\n

Ms. Carmichael says one of <\/b>the main reasons people consider putting their child on title is to avoid probate tax, which is levied <\/b>on an estate by the provincial government at death. Probate tax is highest in Ontario and British Columbia, at 1.5 per cent and 1.4 per cent, respectively.<\/p>\n

Probate tax can be avoided by designating beneficiaries for certain assets and owning property jointly with one or more people with a \u201cright of survivorship,\u201d which means that when one owner dies, the surviving owner(s) remains on title and inherits the deceased owner\u2019s share automatically. <\/p>\n

Another option is creating a trust in which the parent is the trustee and the beneficiary during their lifetime. Upon the death of the last surviving spouse, the assets are distributed according to the terms of the trust, bypassing probate. A trust also allows parents to maintain control of the asset while they\u2019re alive. <\/p>\n

Ms. Carmichael says parents can also create separate wills for probate and non-probate assets, but notes the option is implemented more commonly by people living in B.C. and Ontario. <\/p>\n

Avoiding probate is a major consideration because the principal residence is often the largest asset in a family, says Leanne Kaufman, president and chief executive officer of RBC Royal Trust. <\/p>\n

She says adding adult children to the title while alive can also simplify the estate. <\/p>\n

\u201cIf it\u2019s joint tenancy, it\u2019s a very simple transfer: You register on title the death certificate of the joint owner and 100 per cent vests in the name of the surviving joint owner \u2013 as long as it\u2019s right of survivorship,\u201d Ms. Kaufman says. <\/p>\n

If the asset is transferred after death, it could be subject to probate, she says, which, even if the fees aren\u2019t as high as they are in Ontario and B.C., can take several months to complete.<\/p>\n

Beware of family feuds<\/p>\n

Ms. Kaufman says some parents put in their will that they want to distribute their assets equally to their children, with no specific rule about what should happen to their real estate, which can lead to disputes.<\/p>\n

\u201cIt\u2019s up to the executor or the beneficiaries to decide what they\u2019re going to do with it, which can be pretty emotional,\u201d she says.<\/p>\n

Parents who plan to leave their property to one child need to specify that in their estate documents, she says, even if that child is on title. <\/p>\n

She points to the 2007 Supreme Court of Canada decision, Pecore v. Pecore, which changed the legal framework for how certain joint tenancies are treated. The court ruled that when a parent transfers property to an adult child as a joint tenant and there are other children listed as beneficiaries of the estate, the child on the title is presumed to be holding their share in trust for the estate.<\/p>\n

\u201cIt should be documented, whether it\u2019s a gift or whether it\u2019s being put into a child\u2019s name for convenience purposes or probate avoidance \u2026 because other siblings could say, \u2018That was never meant to be just for you and we\u2019re all sharing in the estate,\u2019\u201d Ms. Kaufman says. <\/p>\n

Losing control<\/p>\n

Ms. Kaufman cautions parents that putting adult children on title will mean relinquishing full control of the assets. <\/p>\n

\u201cIt\u2019s no longer available to the parents to dispose of as they wish or when they wish,\u201d she says. <\/p>\n

For example, she says parents may need to use the proceeds from a home sale to pay for a retirement home or long-term care facility. <\/p>\n

\u201cIt may impair their ability to make that decision,\u201d Ms. Kaufman says.<\/p>\n

Adding kids to a title could also trigger capital gains for the parents at the time of transfer if it\u2019s a secondary residence, such as a cottage. If it\u2019s a parent\u2019s principal residence, but the secondary residence for the child, the child would likely be subject to capital gains down the road when the property is sold.<\/p>\n

Carol Willes, director of estate planning for BMO Private Wealth, notes that another risk of joint tenancy for parents is that it exposes the asset to creditor claims that the adult child may have. That may be because of financial mismanagement or professional liability, depending on their career.<\/p>\n

Also, if the child is married or in a common-law relationship, the property could become part of a claim if there\u2019s a divorce or separation. <\/p>\n

Ms. Willes notes spouses can agree to avoid property division through a separation agreement, cohabitation agreement or marriage contract. However, she warns these options might create tension if the child is added to the title when they\u2019re already in a relationship, and one of those agreements is then drawn up.<\/p>\n

\u201cSometimes, after the fact, it can become more contentious,\u201d she says.<\/p>\n

Another option, Ms. Willes says, is for the parents to put the adult child\u2019s portion in a bare trust to protect the asset from legal claims and potentially avoid probate.<\/p>\n

\u200b\u200bParents who put adult children on title can also consider a co-ownership agreement that details each person\u2019s obligations and responsibilities. These could include who\u2019s responsible for payments related to upkeep, maintenance and taxes <\/b>if the child is expected to shoulder some of the responsibility, <\/b>Ms. Carmichael says. <\/p>\n

\u201cA parent is giving up control of their property, and will require consent from their co-owner adult child to avoid conflict when dealing with it in the future, including selling, mortgaging or leasing the property,\u201d she says. \u201cA co-ownership agreement can address these issues and more.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: One of the main reasons people consider putting their child on title is…\n","protected":false},"author":2,"featured_media":231979,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3093],"tags":[73900,9884,51,474,91084,2499,16,15],"class_list":{"0":"post-231978","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-advisor-noregwall","9":"tag-appwebview","10":"tag-business","11":"tag-finance","12":"tag-globe-advisor","13":"tag-personal-finance","14":"tag-uk","15":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114783635693592940","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/231978","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=231978"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/231978\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/231979"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=231978"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=231978"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=231978"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}