Why It Can Cause More Problems Than It Solves
Parents sometimes think it’s a good idea to put their child’s name on the deed to a home or investment property. While the intention may be good — planning for the future or “avoiding probate” — adding a minor to title can create serious problems.
Here are the main pitfalls to keep in mind:
🚫 Minors Can’t Legally Sign
Children under 18 can’t sign contracts like deeds, mortgages, or sales agreements. That means if you want to sell or refinance the property later, you may be stuck until they turn 18 — unless you go to court.
⚖️ Court Involvement is Often Required
If a minor owns part of the property, a judge usually has to appoint a guardian or approve the transaction. This adds time, expense, and hassle to what should be a simple process.
💰 Financing Roadblocks
Banks don’t want minors on mortgages. If your child is on title, refinancing or borrowing against the property becomes very difficult, if not impossible, until they’re an adult.
🧾 Tax and Gift Issues
Adding a child to title is often treated as a gift under tax law. That could trigger tax reporting requirements for you. Later, when the property is sold, the child’s share of the gain may also create tax headaches.
🔒 Loss of Control When They Turn 18
Once your child becomes an adult, they legally control their share of the property. They could refuse to sell, demand their portion, or even force a sale.
✅ Better Alternatives
If your goal is to protect your child’s future or plan for inheritance, there are better tools:
– Trusts – A trust lets you keep control now while planning for transfer later.
– UTMA/UGMA accounts – These custodial accounts hold assets for minors until they’re adults.
– Estate planning – Wills and living trusts transfer property smoothly without putting minors directly on title.
👉 Bottom line: Putting a minor on title usually creates more problems than it solves. Talk to a real estate attorney or estate planner about safer options.
