Why Adding Your Child to Your Deed Can Be a Costly Mistake in Pennsylvania

It’s a question we hear all the time:“Can I just add my child to my house deed to avoid probate or inheritance tax?”

While the idea sounds simple, this strategy can lead to major legal and financial headaches. From lawsuits and divorce to unexpected taxes, you could unintentionally put your home and your child at risk.

At Entrusted Legacy Law, we want families to know the full picture before making decisions that could impact their legacy.

Why Adding a Child to the Deed Seems Appealing

Many parents believe that putting their child’s name on the deed will help them:

• Avoid probate court

• Bypass Pennsylvania’s inheritance tax

• Simplify the transfer of property after they pass

  
  

While those outcomes might sound great on the surface, the risks often outweigh the benefits.

The Hidden Dangers

💥 Legal Liability:If your child is ever sued or goes through a divorce, their ownership stake in your home could be exposed. That means a creditor or ex-spouse might come after your home.

🔐 Loss of Control:Once your child is on the deed, you can’t sell, refinance, or make changes without their written permission. You’ve essentially given up full control over your property.

💸 Capital Gains Tax Issues:Here’s the tax trap most people don’t realize:When your child inherits your home through a will or trust, they get a step-up in cost basis, which can drastically reduce capital gains tax if they sell the home.

But if you add them to the deed now, they lose that benefit. This could result in thousands—or even tens of thousands of dollars in capital gains tax later.

Why Inheritance Tax Isn’t the Real Problem

It’s true—Pennsylvania does have an inheritance tax. But in most cases, it’s one of the lowest taxes your estate will face.

Trying to avoid it by putting your child on the deed could cost far more in the long run due to capital gains, legal issues, and lost flexibility.

A Smarter, Safer Way to Protect Your Home

The good news? You don’t have to choose between paying inheritance tax and putting your home at risk.

With the right estate plan, you can:

• Avoid probate

• Reduce taxes legally

• Maintain control over your home

• Protect your legacy from lawsuits, divorces, and disputes

  
  

A properly designed revocable living trust or Medicaid Asset Protection Trust can help you pass your home to your children safely and efficiently without the hidden consequences of joint ownership.

Let’s Build a Plan That Works for Your Family ❤️

Every family is different, and so is every estate plan. Don’t rely on risky shortcuts—talk to us about a personalized strategy that protects your loved ones and secures your legacy the right way.

📞 Schedule your free consultation today:👉 https://book.entrustedlegacy.law/#/introcall