Putting Kids on Deed

[Dano1182]

I have been thinking of adding my kids to our deed.
Can this be done?
Should it be done?

 

[LIFERBABE]

It can be done, but there are many reasons not to.

First, it can count as an asset or a liability in your childs finances. That can be a good thing or a bad thing if filing for financial aid or bankruptcy.

You cannot sell without the consent of your adult child or your child could try to sell.

Your child could make ressies and use the points without your consent.

I have purchased separate add-ons for my 2 boys that I will give them when they are older. These will be in their name only and I will not have any financial interest.

 

[Laurajean1014]

I was under the impression that children under 18 cannot be on the deed. However, upon their 18th birthday, they can be co-owners of the real estate and be added to the deed.

 

[Cruelladeville]

And once your kids are 18 you still should not have them on your deed. If they divorce, the contract automatically becomes an asset that must be sold to satisfy debt, regardless whether or not they had it before their marriage. Also, if your child should really grow up to be an antisocial jerk, the contract could be ordered sold to satisfy back payments due, settle claims, and get them out of bankrupsy. If you want to be nice to your kids, keep it in your name, and just let them use your contract. They would love it if they didn't have to pay maintenance, but could use the points for a trip.

 

[disneydawn6]

I just finished adding my adult daughter to my small 30 point contract. Let me tell you what a hassle it was. I was going to try a do a quick deed myself as Dean suugested. I sent an email to the Orange County register to ask him what info I needed and if I needed to come in or just send it.. Well he called me and said I could just send it, but convinced me to have a professional do it... I should not have listened to him

I contacted the Timeshare Closing Service and they said they would add her name to the deed for $150. I then called Disney who said I needed the First right of Refusal from them and who I wanted them to send it to. I told them to send it to TimeShare Closing. I had to fax Disney with the request for the FROR Well I sent Timeshare Closing a copy of the deed and a check. They emailed me the quick claim deed. I had it notorized and sent it back. This was on August 17. I kept looking at orange County resgister to see if the deed was recorded. On August 24 I saw the quick claim deed recorded. I called Disney to see what I needed to do next. They said I needed the FROF recorded too. I asked had they sent it to Thimeshare closing? They didn't know. I called Timeshare closing they said they had not recieved it and if I wanted that recorded too I would have to send them additional money... I asked why? Since I had paid them $150 to add my daughter's name to the the deed.. They said if the deed and FROR had come together they would have done it for the same price... I told them I would have waited since the deed was not valid anywhy and why had they not waited.... They did agree to not charge me extra, but I was rather upset about it by then..

Called Disney back and said they had not recieved my fax.. So I sent it again.. Said please send to Timeshare closing.. A few weeks later the FROR was sent to me..... I then had to send it back to Florida.. They did have it recorded and I faxed Disney a copy of the recorded deed FROR and a change of ownership Disney had sent me with the original FROR. Today is Oct 12 and Disney called me today to give me my new membership number... I had kept my 150 and 100 add on in my name and just added her the 30 points.. so Disney said those points would have to have a new membership number.. I plan to add her onto the 100 point contract one day.. My other daughter will get the 150 point contract. But I will do it myself

 

[manning]

I posted this on another thread. There are tax consequences involved. When you die and they sell their cost basis on their interest will be at your original purchase price, or maybe on the cost value at time of putting them on the title. (not sure how your cost basis will be treated, not familiar with joint ownership). The cost basis on your share may be stepped up. If they inherit everything the cost basis is stepped up to the cost on the date of death.

It's the same as inheriting your house. You may have paid 35,000 dollars for it years ago and when you sell it for say 700,000 dollars you will pay capital gains on 165,000 dollars (IE 700,000 - 500,000 - 35,000 = 165,000. assuming jointly owned by you and spouse.)

When they inherit the house the cost basis is stepped up to assessed value at time of death.(IE stepped up value is now 700,000.00 - 700,000.00 = 0 taxable value.

Plus if you want to sell in the future you all have to be in agreement (assume if they are underage you may be able to act in their behalf.)

Check with your tax advisor and attorney, I have been wrong before.