Why We Don’t Add Children to Property Deeds

Adding your child’s name to your deed may seem like an easy way to ensure your home passes smoothly to them one day. Many parents think it’s a cost-saving alternative to drafting a will or trust. But in reality, this decision can create major legal, tax, and financial complications for both you and your child.

At Grand Strand Law Group, we regularly meet clients who come in after learning—too late—that adding a child to their deed caused unexpected problems. Here’s what you should know before making this choice.

When you add someone to your deed, you’re giving them legal rights as a co-owner. That means you cannot sell, refinance, or make certain changes to the property without their signature. Even if you and your child have a good relationship, life changes—such as disagreements, marriage, or relocation—can complicate decisions.

Your home is one of your most valuable assets. By making your child a co-owner, you also expose it to your child’s potential legal or financial troubles. If they go through a divorce, file bankruptcy, or face a lawsuit, their ownership interest in your home could be pulled into the case.

What looks like a simple change on paper can result in costly tax issues. Adding your child as a co-owner can trigger federal gift taxes, and when they eventually sell the home, they could lose out on the “step-up” in basis that usually reduces capital gains taxes after inheritance. Instead of saving money, your family may end up paying more.

In South Carolina, there are additional issues to consider. Property transfers can affect Medicaid eligibility, since adding a child to your deed may be considered a “transfer for less than fair market value.” That could disqualify you from receiving Medicaid benefits for long-term care. On top of that, South Carolina requires all real estate transactions, including deed preparation, to be handled by an attorney. An online or “DIY” deed form will not meet state standards and could cause title issues later.

Property ownership decisions are rarely as straightforward as they seem. What feels like a quick fix could create costly consequences for your family. Working with an experienced South Carolina attorney ensures you maintain control of your property while also creating a clear plan for passing it down.

Your home is more than just property—it’s your family’s foundation and one of your most important investments. Don’t risk it with shortcuts that may cost more in the end. If you’re considering ways to protect your home and pass it to your loved ones, contact Grand Strand Law Group today. We’ll explain safer, smarter alternatives like wills and trusts that give you peace of mind without unintended risks. Call us at 843.492.5422 to schedule a consultation.