Should You Add Your Children to the Title of Your Home?

Adding your children to the title of your home might seem like a simple way to protect your assets or make inheritance easier. But the legal and financial implications can be much more complex than many families realise.

In Victoria, adding a child to your property title is a decision that affects your legal ownership, tax position, and even Centrelink entitlements. It can also expose your home to unexpected risks if your child experiences financial difficulty or relationship breakdowns.

Before you make this decision, it’s important to understand what it actually means – and the potential consequences for your estate plan.

■ What Does It Mean to Add Someone to Your Property Title?
Adding a child to your property title means you are transferring part ownership of your home to them. You may choose to make them a joint tenant (with equal rights to the whole property) or a tenant in common (owning a specific share).

Once the title is transferred, your child becomes a legal owner of the property. That means they will have legal rights and responsibilities over the home, which also includes potential exposure to tax and financial claims.

This isn’t the same as simply including your home in your Will. Transferring ownership now changes the legal structure of your asset while you’re still alive.

■ Risks of Adding Children to the Title of Your Home
Before you change the title, you should consider the following legal and financial risks:

1. Capital Gains Tax (CGT)
If your child does not live in the home as their principal residence, their share of the property may be subject to capital gains tax when the home is sold.

2. Stamp Duty
In Victoria, adding someone to your title may trigger stamp duty. This depends on whether they pay you for the share and how the transaction is structured. It’s not always tax-free.

3. Asset Exposure
Once your child becomes a legal owner, their share of the property could be affected by:

Bankruptcy or debt recovery
Family law disputes in the event of separation or divorce
Financial or legal claims against them personally
4. Loss of Control
If your child is a joint owner, you may no longer be able to make decisions about the home (such as selling or refinancing) without their consent.

5. Centrelink Implications
Transferring part of your home may be seen as gifting under Centrelink rules. This can impact your Age Pension or other entitlements.

6. Disruption to Your Estate Plan
Adding a child to your title now may unintentionally exclude other beneficiaries in your Will. It can also increase the chance of estate disputes if the arrangement isn’t clear or consistent with your estate planning documents.

■ Why Some People Still Consider It
In some cases, people want to add children to their home title to avoid probate or reduce legal steps after death. It also makes inheritance more efficient and protects the home from being sold to fund aged care.

While these goals are understandable, adding someone to your title is rarely the best solution. There are usually other estate planning strategies that can achieve the same goals with fewer risks. Talk to an estate planning lawyer like Bayside Wills and Estates to discuss your options before making any of these decisions.

■ What to Do Instead
If you want your child to receive the family home after you pass away, you can:

- Include the property in your Will
Use testamentary trusts for asset protection and tax planning
Appoint your child as the executor of your estate (if appropriate)
These approaches allow you to retain full ownership and control while alive, and reduce the chance of conflict or legal problems later.

- Always Get Legal Advice Before Making a Change
Property and estate planning decisions are deeply connected. A well-intentioned move like adding your child to your home title could end up causing unintended tax issues or disputes among family members.

Before you make any decisions, it’s important to get personalised legal advice.

At Bayside Wills and Estates, we help families across Victoria understand the full implications of their choices and create estate plans that protect their wishes.

If you’re considering adding your child to your title, or want to update your Will or estate strategy, book a free consultation with our estate planning lawyers.