Adding Children to Title: Know the Risks

Parents sometimes add a child to the title of their home to “avoid probate” or “make things easier later.” It can work, but it carries real risks that many people don’t hear about until it’s too late.

Risks to understand

• You give up control. You may need your child’s signature to sell or refinance.
• Your child’s problems become your home’s problems. Their creditors, a bankruptcy, or a separation could reach the property.
• Family disputes. Other children may challenge whether the home was meant to be a gift or held for the whole estate. Ontario courts look closely at what the parent intended.
• Tax effects. If the child doesn’t live there, their share may not be covered by the principal residence exemption later.

Joint tenancy vs tenants in common

As joint tenants, when one owner dies the survivor owns the whole property automatically. As tenants in common, each owner’s share passes under their own will. The choice matters a great deal.