Why You Shouldn't Deed Your Home to Your Children


Attorney Thomas B. Burton discusses some of the pitfalls to transferring your home to your children during your lifetime. Attorney Burton also discusses why this Medicaid planning strategy often leads to unintended consequences.


Transcript of Video: Why You Shouldn’t Deed Your Home to Your Children

Today's question why shouldn't I

gift my home to my children via deed and

continue living in it for Medicaid

planning purposes I run across this

scenario many times while it looks quick

and easy to execute a deed and give your

home to your children with the idea that

you can remain living in it it often

leads to unintended consequences and I

tend to advise clients to avoid doing

this. Why? Once you execute that deed

your children technically own the home

that means you live there at their mercy

if one of the children should encounter

creditor problems a creditor could

attach to your home let's say it's a

family home you spent your life working

to pay off completely now a child

perhaps through no fault of his own was

in an accident and a creditor puts a

lien on your home that may affect your

ability to stay in the home for the rest

of your life even if your children are

willing another reason is you give up

control of the home while you are the

owner you control what happens with it

if your children take over they have to

agree and manage it and what may be in

their best interest is not always in

your best interests even if they're good

people

the other reason is there's a good way

to do this without using the deed

transfer and that's by using a trust

where you retain the power to live in

the home but give the home ultimately to

your intended beneficiaries which would

be your children for this reason I

advocate trust planning over the deed

method while the deed can seem quick and

easy and cheap it's often too good to be

true and leads to bigger problems later

so consider a trust when you're trying

to leave your home or other special

asset to your children over the deed

Great question and thank you for asking!

© 2018 Law Office of Thomas B. Burton. All Rights Reserved.

Transcript and captions provided for ease of access for the hearing impaired.

For questions about this topic, or to suggest a topic for a future blog post, please contact my office.

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