Bourne, Jenkins & Mulligan

February 15, 2003
Should I transfer ownership of my house to my children?

by Amy MacMillan

Often there are good reasons to transfer title to one’s home to one’s adult children. Doing so may eliminate the need to apply for probate upon the parent’s death, which both speeds up a sale of the property and reduces probate taxes. If the parent is removed from title entirely, the deletion of this asset from his or her financial statement may boost eligibility for government benefits. If a child lives in the home or wishes to do so in the future, putting him or her on title early may smooth that transition.

However, transferring ownership while the parent is alive can also cause difficulties. For instance, if a child already owns a home, taking title to a parent’s home may increase the child’s tax burden significantly. As well, it is important to consider how many children will share title to the home. Will they be able to agree about maintenance, use and disposition of the home? Will they take title to the property as joint tenants (the last survivor takes 100% ownership), or as tenants-in-common (on each child’s death his or her heirs take an interest)?

If the parent intends to continue living in the home, who will pay the expenses? What if the parent can pay initially but later cannot? What happens if the parent ends up in hospital and his or her return to the home is uncertain?

These issues are best addressed prior to transfer of title. They should be discussed with your lawyer and set out in writing so that understandings are clearly recorded and future disagreements are avoided or easily resolved.

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