Should I Put My Son’s Name on Title?

Dear Liza,, Within a month I’m going to have a closing on a duplex house in NJ.   If I want my son to live there and manage it for us (since he lives in NJ) should I put his name in the title also?  If somebody sues him for any reason can they go after the house if his name is included in the title?  Is there any legal differences whether his name is included in the title or not?  Short answer: YES!  If you put your son’s name on title to the duplex, you are making a taxable gift to him equal to the value of percentage of the property you put in his name. You and your wife can each give him $13,000 free of gift tax ($26,000) total per year. But if the property is worth more than that, which it probably is, you’ll have to file a gift tax return by April 15th of the year following the gift, reporting the value.  Currently, you and your wife can each make gifts of up to $5 million, so you’re most likely not going to owe any gift tax on this transaction, but by reporting it, you’ll be using up a part of that lifetime gift tax exclusion. And yes, certainly, if his name is on title, creditors can go after his percentage ownership of that property.  Finally, if you put him on title now, his basis in that property (for the share that he would own) will be the original cost of the property; if, instead, he inherits it upon your death, his tax basis in that property will be stepped up to it’s then current market value (which means no capital gains tax if he sells it at that time).