The main pro is avoiding probate on that share, though the cons usually outweigh it. Your child inherits your original cost basis instead of a stepped-up one. A gift tax return comes due, and their creditors or divorce can reach your home. A Florida Lady Bird deed delivers the same probate savings without any of those tradeoffs.
Start Here: This Is Attorney Territory
Estate decisions carry consequences that outlast everyone involved, which is why a caution belongs at the very top. On the Discover South Florida Podcast, Larry Mastropieri opened with exactly that.
"I am not an attorney. I'm not giving legal advice. Let's start with that."
He draws a clear line around where his knowledge ends.
"I'm not going to sit here and pretend to know all the answers and have all the experience of all the litigated cases around what happens when things go wrong."
Everything below describes how these arrangements generally work in Florida. A licensed estate planning attorney should design whatever you actually sign.
The Pro: Probate Gets Skipped
One genuine advantage explains why so many parents consider this. A deed held with rights of survivorship transfers automatically when the first owner dies, and Larry describes the appeal plainly.
"You have the right of survivorship on the deed, which basically means I die, the next person gets it. It's very quick and easy."
Simplicity carries real value for families dreading a court process.
"If you're trying to do some form of estate planning strategy where your child automatically just owns the home if you pass, then that's pretty efficient."
He immediately notes that better tools exist for the same goal.
"There's a million ways to do this. You can put it in a trust."
The Cons Most Families Never See Coming
Florida estate attorneys reach a strikingly consistent conclusion on this question, and the reasons stack up quickly.
- Your child receives your original cost basis instead of a stepped-up one at your death.
- A gift tax return becomes due on the share you transferred.
- Creditors, lawsuits, and divorce proceedings against your child can reach the property.
- The arrangement cannot be undone without your child's written consent.
- Medicaid treats the transfer as a gift, triggering a five-year look-back period.
- The transfer can complicate or shrink your homestead exemption and Save Our Homes cap.
Larry frames the central tradeoff in one sentence.
"When you put someone else on the title, you're giving up some level of control."
The Stepped-Up Basis You Give Away
This consequence costs families the most money and surprises them the most. Property inherited at death receives a basis equal to fair market value on that date, which usually erases decades of taxable appreciation.
A child added during your lifetime forfeits that treatment on the transferred share. Picture a home bought for $80,000 that is worth $600,000 today. An heir who inherits it could sell immediately with almost no taxable gain. A child placed on the deed years earlier instead carries the old $80,000 basis on their half. Owners across Palm Beach County have handed their families six-figure tax bills through a single well-intentioned deed.
Your Child's Problems Become Your Home's Problems
Co-ownership exposes the property to risks that have nothing to do with you. A judgment, bankruptcy, or divorce involving your child reaches their share immediately.
Florida's constitutional homestead protection shields your primary residence from most forced sales, though that protection does not extend to a non-resident child's interest. A creditor holding a claim on that share can pursue a partition action covering the entire property. Your home becomes collectible for a debt you never incurred.
Control You Cannot Take Back
A recorded deed creates rights that only your child can release. Any sale, refinance, or loan against the property now requires their signature and cooperation.
Family dynamics shift over years, and a cooperative child today may be an unreachable one later. Nothing in the arrangement lets you reverse course alone. Homeowners in West Palm Beach have found themselves unable to sell without a signature they could not obtain.
Ready to pass your home to your kids without a court fight? Talk to a real estate agent near Boca Raton who works alongside probate and estate attorneys on these transfers constantly. Reach out to The Mastropieri Group or call (561) 544-7000.
Is a Lady Bird Deed the Better Option?
Florida offers a tool built for precisely this goal, and estate attorneys recommend it far more often than a name added to a deed. An enhanced life estate deed, commonly called a Lady Bird deed, names your child to receive the property at your death. You keep complete control in the meantime.
- Probate gets avoided on the property, which is the original objective.
- Your heirs still receive the full stepped-up basis at your death.
- No completed gift occurs, so no gift tax return becomes necessary.
- Homestead exemption and the Save Our Homes cap continue during your lifetime.
- Medicaid look-back penalties do not apply, since you retain full control.
- You can sell, refinance, or change the beneficiary at any time without permission.
Preparation typically runs $800 to $1,500 through an attorney, a fraction of the tax exposure it prevents. The limits deserve mention as well. This deed covers one property, offers no creditor protection during your life, and cannot override a spouse's homestead rights. A revocable living trust handles more complicated estates.
A Will Is Not a Trust
This misunderstanding sends more families into probate than any other, and Larry hears it constantly. A caller recently told him the family was ready to transfer a property because paperwork existed.
"He was like, hey, we need to put this in our name. We have a will. And I'm like, well, a will isn't a trust, and the property isn't in a trust, so you guys get a will. We got to go through the probate process."
A will directs how assets get distributed, though it does nothing to avoid the court process that carries out those instructions. Property passes outside probate only through a trust, a survivorship deed, or a Lady Bird deed. Families across Delray Beach and Boca Raton discover this distinction at the worst possible moment.
How Long Does Florida Probate Take?
Families consistently underestimate the calendar, and Larry has watched the range firsthand.
"That could take 30 days. It could take six months. I've seen it go both ways."
An accurate prediction early in the process proves nearly impossible.
"It just depends on the nuances of the probate case. Sometimes you don't know how long it's going to take until you're in it."
The pattern he sees among inheriting families explains why this page matters at all.
"Most sellers that have inherited a property, their family members didn't set it up correctly."
Why Listing Before Probate Clears Backfires
Heirs eager to sell often push to reach the market immediately, and Larry refuses.
"They're like, yeah, we want to get it on the market tomorrow. I'm like, no. We're getting it on the market when the probate attorney tells us it's okay."
His reasoning starts with a fact heirs frequently overlook.
"First off, you don't even technically own the property, so let's start there."
The failure mode follows a predictable arc.
"We can list this thing and get somebody to buy it, and then the buyer eventually just backs out because we couldn't deliver clear title. They've been waiting and we extended and we extended."
His verdict on that approach is blunt.
"That's like shooting your shot too early."
The Mistake That Cost One Family $75,000
A single transaction illustrates the stakes better than any warning could. The sellers assured Larry they had finished the legal work.
"We've had deals where people had $600,000 offers, but they didn't prepare the probate stuff. They told us they did. We took their word for it because they were pros."
Reality arrived at the worst possible moment.
"We're about to close, and it's like, no, you're not closing. And then the buyer backs out. $600K."
The recovery went badly.
"We had to pull it off the market because it was that long of a process. We go back on the market and we get like 525. They lost $75,000 over this stupid thing."
A second trip to the market carried its own penalty beyond the price shift.
"You can't do that multiple times. People are like, oh, it's been on the market. Why didn't it sell? What's the issue?"
Sellers in Palm Beach Gardens and beyond should take the lesson literally. Larry reduces it to six words worth remembering.
"You shoot your shot when you are ready."
The Property Tax Reset Heirs Should Expect
One more consequence lands after any transfer at death, and families rarely budget for it. The original owner's homestead exemption ends when they pass, which removes the Save Our Homes cap that held assessments down for years.
The county reassesses at full market value in the following tax year. Heirs also lose an exemption worth up to $51,411 off assessed value in 2026. A tax bill doubling or tripling in a single year is a common outcome. Families selling inherited property in Broward County should factor that carrying cost into how long they hold.
Questions Worth Asking an Estate Attorney
- Does a Lady Bird deed or a revocable trust better fit my situation?
- How would each option affect my homestead exemption and Save Our Homes cap?
- What happens to my heirs' cost basis under each approach?
- How might this signature affect a future Medicaid application?
- How does my current will interact with the deed on this property?
- What would probate realistically cost my family if I change nothing?
Checklist Before You Change Any Deed
- Consult a Florida estate planning attorney before signing or recording anything.
- Ask specifically about a Lady Bird deed, since many families never hear the option.
- Confirm how the change affects your property tax exemptions.
- Review your child's financial and marital circumstances honestly.
- Locate any existing trust documents and confirm the property is actually titled into it.
- Speak with a probate attorney before listing any inherited property for sale.
This page covers general concepts and is not legal or tax advice. A Florida estate planning attorney and a tax professional should review your specific circumstances.
Settle the Paperwork Before You Reach the Market
Families lose real money on this exact issue, and the loss almost always traces back to paperwork nobody finished. We coordinate with probate and estate attorneys, confirm the title is genuinely clear, and time your listing so the first showing carries full strength. That sequence, done right, is worth far more than reaching the market a few weeks sooner. Reach out to The Mastropieri Group, Realtors® at (561) 544-7000 and tell us where the estate stands and we will help you plan the timing.