If your home is your most significant asset, it can be tempting to sidestep the estate planning process entirely. The logic seems straightforward: just put the house in your child’s name, avoid probate, and call it done. Simple, inexpensive, and effective.
At Washington Elder Law, we hear this reasoning more often than you might expect, and in nearly every case, we advise against it. What seems like a practical shortcut can create serious problems that far outweigh the cost of a proper estate plan. Here is why.
Property Taxes and Your Child’s Liabilities
Two of the most significant risks in transferring your home to a child involve property taxes and their personal liabilities.
In Washington State, transferring ownership of your home can affect the property tax treatment of your home in ways that may cost you more over time. More immediately, once the home is in your child’s name, it becomes part of their financial picture. That means if your child faces a lawsuit, a divorce, significant debt, or a creditor judgment, your home could be at risk. You could lose the place you live because of circumstances entirely outside your control.
Your Relationship May Not Be as Secure as You Think
This is a difficult reality to consider, but an important one. Once your home is legally in your child’s name, you have no guaranteed right to remain there. Your child has no legal obligation to continue allowing you to live in the home. Relationships change, life circumstances shift, and what feels like a safe arrangement today may not hold up over time.
The Complications of Multiple Children
If you have more than one child, transferring the home raises additional challenges. Putting the home in only one child’s name can create resentment and conflict among siblings, particularly if they feel the arrangement is unfair.
On the other hand, placing the home in the names of all your children does not solve the problem. It simply multiplies the exposure to each child’s individual liabilities and increases the risk of complications from paperwork errors, disagreements over the property, or one child’s financial troubles affecting the whole.
A Revocable Living Trust Is a Smarter Alternative
If avoiding probate is your primary concern, there is a better path: a Revocable Living Trust.
A Revocable Living Trust allows you to transfer your assets, including your home, into a trust that you control during your lifetime. You can make changes to it, revoke it entirely, and continue living in your home exactly as you do now. When you pass away, your assets transfer to your beneficiaries without going through probate, and without the risks that come with transferring ownership directly to a child.
A well-drafted Revocable Living Trust is flexible, reliable, and does not have to be expensive. In fact, when you account for the potential costs of probate, family disputes, or legal complications from an informal transfer, a trust can actually save your family money in the long run.
Do Not Risk Losing Your Home
A quick fix that puts your home at risk is not a plan. Before making any decisions about how to handle your most valuable asset, speak with an estate planning attorney who can help you understand your options.
At Washington Elder Law, we work with families across Washington State to create estate plans that genuinely protect their homes, their assets, and their relationships. Whether you are starting from scratch or revisiting an existing arrangement, we are here to help.
Call us at 206-448-1011 or visit our contact page to get started. Washington Elder Law also offers a free Medicaid Planning Webinar with Live Q&A, designed for families who want to understand how to protect their assets, including their home, while planning for long-term care. Founder Brian G. Isaacson, JD, CPA leads each session personally, drawing on more than 30 years of experience in Washington elder law. Sessions are held Tuesdays, Wednesdays, and Thursdays at noon via Zoom, at no cost and with no commitment required. Spots fill quickly. Reserve your spot here.
