In an effort to protect their children’s interest in a Florida home, some elderly citizens opt for putting their child’s names on the deed before death. Can you gift a house to adult children to avoid probate in Florida? Keep reading to find out.Ā Ā
Title Ownership vs. Probate in Florida – The Basics
Any property titled in the decedent’s sole name at the time of death must go through probate in Florida. The title represents the legal ownership of a property. Accordingly, the title holder can gift, sell, lease, mortgage, or refinance the property.Ā
The term “title” does not refer to a physical document, as property ownership is transferred through a deed. A deed designates someone as the title holder of a property. To transfer the title of a property to a child, it is crucial to prepare and record a new deed.
Can I Gift a House to My Children to Avoid Florida Probate? – The Verdict
As long as the house is not titled in the decedent’s sole name when he or she dies, the asset will not be subject to probate in Florida. However, transferring the property in whole or part while you are still alive may not be the best approach.
When an elderly person transfers the full title of a house to an adult child, he or she no longer holds title to the property. After that person’s passing, the property will not go through probate, as the decedent’s child already owns the house.
The problem is not all families are equal. Depending on the family relationship and the behavior of the recipient, an adult child could simply take the home and not let an elderly parent (grantor) remain living there.
A standard way to avoid this type of situation is to put the name of an adult child on the deed to the house as a co-owner. While naming an adult child as a co-owner of a house does not give them the ability to take full control of the property, it may expose the property to risk.
Jointly owning a property give co-owners the ability to mortgage, refinance, or use the asset as collateral to take out loans.
If an elderly parent co-owns a house with an adult child, and the child fails to repay a loan, the creditors can attach a lien against the property. Failing to find a timely solution may lead the creditor to file in court to foreclose the property and sell it to collect the owed amount.
Can I Gift a House to My Children to Avoid Florida Probate? – Strategic Solutions
Gifting a house to adult children to avoid probate is not an ideal strategy. If you want to remain in control of the property while you are alive but direct who will inherit it outside of probate court, you can either use a revocable (living) trust or an enhanced life estate deed.Ā
Under Florida law, assets titled to designated beneficiaries are not subject to probate upon the owner’s death. This way, you can remain in control of the title during your lifetime, and rest assured that your children will inherit the property outside of probate.
Navigating Probate in Florida – Immediately Contact Jurado & Associates, P.A.
A well-versed estate planning attorney from Jurado & Associates, P.A. is willing to help protect your legacy in Florida. Call us today at (305) 921-0976 or email [email protected] to schedule a consultation.Ā
