Adding a child to your home title has major implications under Missouri law. Doing so can help you bypass probate, save time in transferring ownership and reduce legal costs.
However, this choice can carry unintended risks. It is important to explore the estate planning considerations when adding a child to a home title in Missouri.
Why add a child to the home title
Missouri law requires probate to transfer real estate upon a person’s death. Estate plans often add a child as a joint owner. This action allows ownership to pass automatically when the titleholder dies. It avoids probate court and reduces delays. The child named on the title gains immediate ownership without legal paperwork and court involvement.
How to add a child to the title in Missouri
The process starts by visiting the county recorder of deeds office. Select the correct form to add a joint owner. The current owner must sign a deed, often a quitclaim deed. After recording the deed with the county, the child becomes a joint tenant with rights of survivorship. After the titleholder dies, the child retains ownership without probate.
Benefits under Missouri homestead laws
Missouri allows a homestead exemption if the owner lives in the home. Courts cannot force a sale of exempt homes to satisfy debts. Adding a child to the title does not remove the homestead protection. The property stays exempt under Missouri Revised Statutes Section 513.475. The surviving joint tenant maintains protection after the owner dies.
Possible risks and drawbacks
A child listed on the title gains full ownership rights instantly. The child can sell or mortgage the property without the owner’s consent. A child’s divorce or bankruptcy can involve the home in settlements. Adding a child for later inheritance can trigger gift tax consequences. Missouri does not impose state gift tax, but federal rules may apply.
Alternatives to placing a child on the title
Missouri offers other estate planning tools. Transfer on death deeds allow naming a beneficiary who receives property automatically at death. Missouri Revised Statutes Section 461.022 allows this tool. This method passes the home outside of probate without granting ownership during the owner’s life. It avoids risks tied to joint ownership.
Adding a child to the home title in Missouri can simplify estate transfers and avoid probate. It also carries risks related to control, tax, and legal exposure. Property owners need to weigh these benefits and potential consequences carefully.
