Should I Have My Name on the Title of My Daughter’s Home?

Question from Shirley, Should I Have My Name on the Title of My Daughter’s Home?

Answer from AI:

When considering gifting or lending money to your daughter for purchasing a home, and you want to ensure that her domestic partner does not have a claim to the property if she should die, there are several legal aspects to consider. Here are some key points to help you understand your options and the implications of each choice.

Gifting Money and Title Ownership

If you gift money to your daughter to buy a home, you have a few options regarding the title:

• Joint Tenancy: If you and your daughter hold the title as joint tenants, you will have rights of survivorship. This means that if your daughter dies, you automatically become the sole owner of the property.
• Tenancy in Common: If you hold the title as tenants in common, you and your daughter each own a specific share of the property. Upon her death, her share would pass according to her will or state intestacy laws, which could potentially include her domestic partner.
• Trust: Placing the property in a trust can provide more control over what happens to the property upon your daughter’s death. You can specify in the trust document who will inherit the property.

Lending Money and Ensuring Repayment

If you lend money to your daughter, you should formalize the loan to protect your interests. Here are some steps to consider:

1. Promissory Note: Draft a promissory note that outlines the terms of the loan, including the amount, interest rate, repayment schedule, and consequences of default. This document serves as a legal agreement between you and your daughter.
2. Mortgage or Deed of Trust: Secure the loan with a mortgage or deed of trust on the property. This gives you a legal claim to the property if the loan is not repaid. In the event of your daughter’s death, you can foreclose on the property to recover the loan balance.
3. Consult an Attorney: Given the complexities involved, it is advisable to consult with a real estate attorney to ensure that all documents are properly drafted and recorded.

Protecting Your Interests

To ensure that your daughter’s domestic partner does not have a claim to the property and to secure repayment of the loan, consider the following:

• Title Ownership: Holding the title as joint tenants or placing the property in a trust can help protect your interests.
• Loan Documentation: A promissory note and a secured mortgage or deed of trust are essential to ensure repayment of the loan.
• Estate Planning: Encourage your daughter to create a will or estate plan that clearly outlines her wishes regarding the property and the loan.

Legal Advice and Resources

Given the potential legal complexities and the importance of protecting your financial interests, it is highly recommended to seek personalized legal advice. A real estate attorney can provide guidance tailored to your specific situation.

For more information, you can refer to the following resources:
– [Nolo’s Guide to Real Estate Law](https://www.nolo.com/legal-encyclopedia/real-estate)
– [American Bar Association’s Real Property Resources](https://www.americanbar.org/groups/real_property_trust_estate/)

Remember, while this information provides a general overview, consulting with a legal professional is crucial to address your unique circumstances and ensure that all legal requirements are met.