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Should you give your house to your children with a deed?

On Behalf of | Aug 30, 2021 | blog, real estate transactions | 1 comment

If you own your house or other properties, you need to plan what happens to your holdings in the future. Deciding how to distribute your real estate to your family serves both your interests and your family’s.

There are many ways to handle what happens to your home after you die. One way is by giving property to your family members through a quitclaim or warranty deed.

Can you gift property to your children?

You can allocate your real estate assets by giving the properties to your children while still living. This method protects your family members from creditors, provides significant tax advantages for them and keeps the property out of probate following your death.

Should you choose a warranty deed or quitclaim deed?

Warranty deeds offer many protections to the people receiving the property. This type of deed certifies that the real estate does not have mortgages, liens or other encumbrances through a title search. This process can be complex and typically requires professional assistance to ensure proper execution.

Quitclaim deeds are less complicated than warranty deeds but do not offer guarantees against possible title defects. You must comply with your county and state rules and have all the required legal documents to transfer property to your family. Real estate lawyers have the experience to help you record and file the documents correctly.

When you own real estate, it is crucial to create a detailed plan for your property. Utilizing a quitclaim or warranty deed enables you to pass on your house to family members before your death, preventing potential issues for your children down the road.