How to Add Someone to a Deed

Adding someone to a deed can be an important estate planning move or a way to transfer partial ownership of a property. Whether you’re adding a spouse, child, or another individual to the deed, it’s crucial to understand the legal implications and the proper process to avoid complications down the road. In Florida, this process requires specific steps to ensure the change is legally binding and doesn’t disrupt the property’s title or create unintended tax consequences. Here’s what you need to know about how to add a name to a deed and how it works under Florida law.

Why Add Someone to a Deed?

There are several reasons why homeowners may want to add someone to a deed. This decision often arises from life changes, such as getting married or planning for inheritance. Some common reasons include:

• Marriage: A newlywed may want to ensure that their spouse has an ownership interest in the home, which can simplify things in the event of death or divorce.
• Estate Planning: Adding children or other heirs to the deed can make transferring property after death simpler and may help avoid probate, depending on how the deed is structured.
• Gifting Property: Homeowners may want to gift partial ownership of the property to a family member while retaining some ownership themselves.

Before adding someone to a deed, it’s important to consider the potential legal and financial impacts, particularly in Florida, where homestead laws and tax exemptions could come into play.

Different Types of Deeds in Florida

When adding someone to a deed, it’s important to understand the type of deed being used. In Florida, there are several types of deeds that can be used to transfer property or add someone to a deed:

• Quitclaim Deed: This is the simplest method for adding someone to a deed. A quitclaim deed transfers whatever interest the grantor (the person transferring the property) has in the property to the grantee (the person receiving ownership). However, it does not guarantee that the title is free from liens or other claims.
• Warranty Deed: A warranty deed offers more protection to the person being added to the deed because it guarantees that the title is clear of liens or other encumbrances. This is a common choice when ensuring the new owner has full legal protection.
• Lady Bird Deed (Enhanced Life Estate Deed): In Florida, a Lady Bird Deed is a popular option for estate planning because it allows the original owner to retain control over the property during their lifetime, but transfers ownership to the new individual (the remainderman) after death without going through probate.

The Legal Process of Adding Someone to a Deed

In Florida, adding someone to a deed requires more than just verbally agreeing to the change. The process must be completed in writing, using a new deed, and then filed with the appropriate county records office. Here’s a step-by-step guide to adding someone to a deed:

1. Consult with an Attorney

Before making any changes to a deed, it’s advisable to consult with an experienced real estate or estate planning attorney. They can help ensure that the transfer is structured correctly, complies with Florida law, and avoids any unintended legal or tax consequences. This is particularly important if the property is your primary residence and you want to maintain the homestead exemption.

2. Choose the Type of Ownership

When adding someone to a deed, you’ll need to decide how the property will be owned moving forward. In Florida, there are different ways to hold title to property, including:

• Tenancy by the Entireties: Available only to married couples, this form of ownership provides asset protection benefits. Both spouses jointly own the property, and upon the death of one, the other automatically becomes the sole owner without the need for probate.
• Joint Tenancy with Right of Survivorship: This form of ownership allows two or more people to hold the title, and upon the death of one owner, the surviving owner(s) automatically inherit the deceased person’s share.
• Tenants in Common: In this arrangement, two or more people share ownership, but their shares are not automatically transferred to the other owners upon death. Instead, each person’s share goes to their estate, and probate may be required.

Choosing the right form of ownership is essential, as it impacts both estate planning and the legal rights of the new co-owners.

3. Prepare the New Deed

Once you’ve decided how the property will be owned, the next step is to draft a new deed. This is typically done by an attorney to ensure that the deed is legally binding and properly drafted according to Florida law. The new deed will list the current owner(s) and the individual(s) being added, and it will describe the form of ownership they will share.

The deed must also contain a legal description of the property, which can be found on the original deed or obtained from the county property appraiser.

4. Sign and Notarize the Deed

After preparing the new deed, all parties involved (the current owner and the person being added to the deed) must sign the document. In Florida, the deed must be signed in the presence of two witnesses and notarized. Failing to properly sign or notarize the deed could result in the document being invalid, so it’s important to follow these formalities carefully.

5. File the Deed with the County

The final step in the process is filing the signed and notarized deed with the records office in the county where the property is located. This makes the change official and puts the new ownership on public record. There is usually a small recording fee involved, which varies by county.

6. Update Related Documents

After adding someone to the deed, you may need to update other related documents. For example, if you have a mortgage on the property, the lender may require that they be notified of the change.

Potential Risks

While adding someone to a deed may seem simple, it can have significant legal and financial implications. Here are some factors to consider before making this decision:

1. Gift Taxes

When you add someone to a deed, you are essentially gifting them a portion of the property. Depending on the value of the property, this may trigger gift tax implications under federal tax law. While Florida does not have a state gift tax, it’s important to be aware of the federal gift tax threshold and consider how this may affect your overall financial picture.

2. Homestead Exemption Impact

In Florida, the homestead exemption offers significant property tax savings for your primary residence. However, adding someone to the deed could impact your ability to claim this exemption, particularly if the new co-owner does not reside in the home or has their own homestead exemption elsewhere. It’s important to understand how this change might affect your property tax bill.

3. Legal Rights of Co-Owners

Adding someone to the deed gives them legal rights to the property, including the ability to sell or encumber their share of the property. If relationships or circumstances change, this could lead to disputes or complications. It’s essential to be clear about the responsibilities and rights of all parties involved in the ownership of the property.

About the Author

Gideon Alper is an attorney who specializes in asset protection planning. He graduated with honors from Emory University Law School and has been practicing law for almost 15 years.

Gideon and the Alper Law firm have advised thousands of clients about how to protect their assets from creditors.