The Hidden Risks of Putting Your Kids on the Title

Episode Summary:

In this episode of Estate Planning Beyond the Binder, Brian Chew, Managing Partner at OC Wills & Trusts, tackles a common but risky estate planning shortcut—putting children on the title of a home. Brian explains why many parents consider this strategy to avoid probate, but also reveals the serious downsides, including tax consequences, creditor risks, and loss of control. He breaks down California-specific issues such as Proposition 19, the step-up in basis, and property tax reassessments. Brian also outlines safer alternatives, including revocable living trusts, that protect assets while preserving flexibility for parents and tax benefits for heirs.

Key Timestamps:

00:01 – Show introduction 01:15 – Why parents put children on title to avoid probate 03:20 – Risks of unexpected events and joint ownership complications 06:05 – How children’s creditors and lawsuits can endanger property 08:30 – The tax downside: losing the step-up in basis 12:00 – California’s Proposition 19 and property tax reassessment issues 15:40 – Why revocable living trusts are a safer and smarter alternative 18:10 – What to do if you’ve already added children to a title 21:25 – Permanent consequences of property transfers vs. revocable trusts 24:00 – Final thoughts on why control and flexibility matter in estate planning

About the Show:

Estate Planning Beyond the Binder breaks down essential information about protecting your loved ones and assets through effective estate planning. The show makes estate planning simple and doable for married couples, homeowners, business owners, and anyone thinking about their future. Featuring Brian Chew, founder of OC Wills and Trust Attorneys.