Think Twice Before Adding Kids on Title to Your Home
Estate Planning Advice for Oakville & Burlington Homeowners
When it comes to estate planning, many Ontario homeowners think adding their children to the title of their home will make things simpler when they pass. On the surface, it sounds practical — you want to avoid probate, make inheritance easier, and keep things “in the family.” But according to Ontario estate lawyers (like Gord Mohan LL.B.), adding your child to title can create serious and unexpected problems — legal, financial, and even emotional. Before you make this common mistake, here’s what you should know.
The Legal Reality: You Give Up Control
The moment you add someone else to your property title, your house is no longer entirely yours. Legally, you now own it jointly — which means every major decision (selling, refinancing, mortgaging) requires your co-owner’s consent. If that co-owner is your child, you’ve just given them legal rights over your home.
Real-World Risks of Adding a Child to Title
Adding a child to title might feel like “estate planning made simple,” but it often leads to complex, costly consequences:
1. Family Law & Divorce Exposure
If your child goes through a divorce or separation, their share of your home could become part of their family property and get dragged into division proceedings.
2. Creditor & Bankruptcy Risk
If your child has credit problems or outstanding debts, creditors could place a lien on their portion of your property — even though you’re still living there.
3. Loss of Flexibility
You may no longer be able to sell, refinance, or even take out a line of credit without your child’s consent once they’re on title.
4. Estate Complications if Your Child Passes Away
If your child predeceases you, their ownership share could become part of their estate, subject to their own will (or Ontario’s intestacy laws). This can create a web of unintended heirs and delays.
5. Capital Gains & Tax Implications
When you add a child to title, you could trigger a “deemed disposition” under the Income Tax Act, resulting in capital gains tax even though no sale occurred. And if your child already owns a home, they could lose access to the principal residence exemption — exposing your property to future tax bills.
6. Insurance, Title, and Mortgage Issues
Your home insurance and mortgage lender must be notified of ownership changes. Failing to do so could invalidate your coverage or violate your lender’s terms.
“But I Want to Avoid Probate!”
That’s the number-one reason people do this — to dodge Ontario’s Estate Administration Tax (commonly called “probate”). However, the savings (roughly 1.5% of your estate’s value above $50,000) are often minimal compared to the potential legal costs and risks you take on. In many cases, the property still ends up forming part of your estate if there’s any question about your “true intention.” And if siblings later dispute ownership, the courts may have to intervene — costing tens of thousands of dollars.
Smarter (and Safer) Alternatives
Here are better ways to plan your estate without risking your biggest asset:
Properly Drafted Will & Powers of Attorney Retains full control during your lifetime and clearly states who inherits your home.
Trusts (Inter Vivos or Testamentary) Allows you to pass control at the right time, protect from creditors, and manage taxes.
Joint Ownership with Spouse (Right of Survivorship) Common for married couples; passes automatically to the surviving spouse.
Estate Freeze or Gift Through Will Lets you lock in value for tax purposes while ensuring your intentions are respected.
Every family’s situation is unique — so it’s best to speak with a lawyer or tax advisor before making changes to your property title.
Estate Planning in Oakville & Burlington: Why Local Expertise Matters
Real estate and estate law can vary significantly by province, and even municipal regulations can play a role. In Oakville, Burlington, and the Halton Region, property values are high and family homes often make up the largest portion of a person’s net worth. Protecting that asset through smart estate planning can save your family stress, time, and money later. If you’re thinking about future planning — whether for downsizing, inheritance, or protecting family assets — I can connect you with trusted local estate lawyers and tax advisors who specialize in Ontario real estate.
Final Thoughts
Adding your kids to your home’s title may sound like an easy estate shortcut, but for most families, it opens the door to unnecessary legal, tax, and financial risks. A well-crafted Will and Power of Attorney, reviewed by a qualified lawyer, almost always provides a safer, more flexible way to protect your home and your legacy.
About Lynne Blott
Lynne Blott is a licensed Real Estate Broker serving Oakville, Burlington, and the Halton Region, specializing in helping homeowners, downsizers, and families navigate every stage of home ownership — from buying and selling to legacy planning. Learn more at TheBlotts.ca or connect with Lynne directly for trusted real estate advice.
Disclaimer
This article is provided for general informational purposes only and does not constitute legal, financial, or tax advice. Real estate and estate matters are complex and depend on individual circumstances. Readers should consult with a qualified lawyer, accountant, or estate planning professional in Ontario before acting on any information contained herein. Neither Lynne Blott nor The Blotts Real Estate Team assumes any liability for actions taken based on this article.
