Schedule your free Exploratory phone call

Click here to see how we
can be of assistance.

Careers/Open Positions

Explore all available job
listings and become a part of an amazing team.

Our Social Media

Connect with us on Social Media using the following buttons:

Visit our Podcasts

Listen in, Join the Conversation!

Recent Posts
Entrepreneur Estate Plans For Those Who Choose To 1) Ready, 2) Fire, THEN 3) Aim

Estate planning for business owners, particularly those known for impulsive decision-making, requires a nuanced approach. ...

The post Entrepreneur Estate Plans For Those Who Choose To 1) Ready, 2) Fire, THEN 3) Aim first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.

See more
How Rising Interest Rates Can Affect Your FinancialPlans

Whether you are managing debt, investing assets, or developing an estate plan, changes in interest ...

The post How Rising Interest Rates Can Affect Your FinancialPlans first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.

See more
Creating a Financially Organized Life

Here’s how to get a jump-start on creating a system to organize your bills, statements, ...

The post Creating a Financially Organized Life first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.

See more

The Financial and Legal Implications of Adding a Name to a Property Deed

When it comes to owning property, you may want to share that responsibility or privilege with someone else, perhaps a family member or a friend. Adding someone’s name to the title of your property may seem like a straightforward process, but there are various tax and legal consequences you should be aware of. In this article, we will explore these implications and shed light on what to consider before making such a significant move.

For a more detailed discussion, we recommend this insightful article by SmartAsset.

Tax Implications

Gift Tax

One immediate concern when adding someone’s name to your property deed is the gift tax. If the value of the share of property you are giving exceeds the annual gift tax exclusion ($15,000 as of 2022), you may be responsible for paying gift tax or utilizing part of your lifetime exemption.

Capital Gains Tax

When the person whose name you’ve added decides to sell the property in the future, they might be subject to capital gains tax. The tax rate will depend on the difference between the selling price and their basis in the property, which is often the original purchase price.

Legal Implications

Property Ownership Structure

Adding a name to a deed changes the structure of property ownership. Different ownership structures, like joint tenancy or tenants in common, come with distinct rights and responsibilities. Make sure you understand these differences before taking any action.

Liability

Once someone else’s name is added to the deed, they also become responsible for the property, including its debts and liabilities. If the property incurs debt or faces a legal action, both parties will be accountable.

Future Sale or Transfer

Adding another name can also complicate matters if you decide to sell or transfer the property in the future. Both parties must agree to the sale or transfer, and disagreements can lead to legal issues.

Conclusion

Adding a name to a property deed is a decision that should not be taken lightly. It has both tax and legal implications that can impact your financial situation and future planning. Always consult a tax advisor and legal expert before making any changes to property ownership.

If you’re considering adding someone’s name to your property deed and need professional advice, Shah Total Planning is here to help. Our team of experts in wealth management and law can guide you through the tax and legal complexities to make the best decision for your situation. Don’t hesitate to reach out to us for a personalized consultation.

Disclaimer: This article is for informational purposes only and does not constitute legal or financial advice. Always consult with a qualified professional for specific advice tailored to your individual needs.

Schedule your free Exploratory phone call

Click here to see how we
can be of assistance.

Careers/Open Positions

Explore all available job
listings and become a part of an amazing team.

Our Social Media

Connect with us on Social Media using the following buttons:

Visit our Podcasts

Listen in, Join the Conversation!

Recent Posts
Entrepreneur Estate Plans For Those Who Choose To 1) Ready, 2) Fire, THEN 3) Aim

Estate planning for business owners, particularly those known for impulsive decision-making, requires a nuanced approach. ...

The post Entrepreneur Estate Plans For Those Who Choose To 1) Ready, 2) Fire, THEN 3) Aim first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.

See more
How Rising Interest Rates Can Affect Your FinancialPlans

Whether you are managing debt, investing assets, or developing an estate plan, changes in interest ...

The post How Rising Interest Rates Can Affect Your FinancialPlans first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.

See more
Creating a Financially Organized Life

Here’s how to get a jump-start on creating a system to organize your bills, statements, ...

The post Creating a Financially Organized Life first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.

See more