Irvine Law Firm - Share The Land - How can I add someone to my Deed?

Share The Land - How can I add someone to my Deed?

To add someone to your Deed, you must convey an interest in the property to them. You are no longer the sole owner. The interest you convey may be current ownership or an interest that vests in the future. There are various ways that multiple people can share an interest in a tract of land. Each option will have a different effect on your estate planning and has different tax ramifications.

Your approach should be tailored to your specific situation, goals, and estate plan. You are advised to consult with an attorney and a CPA before transferring any interest in your property. Your grantee not only owns part of the land, but their interest may be subject to their creditors, so it is important to understand all of the consequences of your decision to add someone to your Deed.

Each real estate transfer option is different. You cannot “undo” your transfer because you change your mind or change your plan. Be sure you choose the option that is best for your situation. You should know both the legal and tax effects of your choice before signing the Deed.

There are different ramifications to adding your spouse to your Deed, which may include changing separate property to marital property. For more details regarding spouses and Deeds, see our blog Does my spouse have to sign the Deed?

If you would like to explore your options for transferring an interest in your property, contact Irvine Law Firm today.

What are some options for joint ownership? Assume A wants to add B and C to his Deed.

1. A can transfer a stated percentage interest, such as 10%, to each person and could later transfer additional interests. This is particularly useful when you are gifting smaller interests to children over time or if you want to retain the majority interest.

2. A can transfer the property to A, B and C in equal shares. The end result will be that each of them owns a one-third undivided current interest in the property. They are “tenants in common” and any of them could sell their third interest without the consent of the others.

3. A could transfer the property into the three names as “joint tenants with right of survivorship.” The last person to survive will own the property in fee simple.

4. A could transfer a remainder interest to B and C and reserve a life estate for himself. Upon A’s death, the property will automatically pass to B and C, outside of A’s estate.

5. A could set up a Limited Liability Company to own the real estate and then transfer interests in the LLC to B and C over time.