Adding sister to deed

I own my home outright and only pay property taxes each year. I'm a single, 52-year-old woman. My mother is insisting that I add my sister to the deed. Why would I do this? And how?

There is no need to add your sister to the deed since you can leave the property to her in your will if you want her to have it. Putting her on the deed will make her an owner and give her all the rights that go along with ownership.

You and your sister may be best friends. Money changes everything. Once you add her to the deed, you can't take her off without her permission.

Here are just a few examples of why it's not a good idea.

• If she ever has financial problems, a lien can be placed on any assets where she is listed as owner (e.g. the house) that has to be settled if/when the asset is sold.
• If the house is sold, she gets half the proceeds without having put anything into the house. (Oh, sure... she says she doesn't want the money at this time - just wait until the house is sold.)
• If she gets mad at you, she can force the house to be sold.
• If you have a casualty loss on the house, the insurance check is made out to both names. She could refuse to sign it unless you give her some of it.

I wouldn't do it.

There are more reasons as well. If she is younger than you, it can screw up things in ten years if you decide you need a reverse mortgage for whatever purpose. It's also disadvantageous to her, if the goal is for her to have it when you die. If you give it to her now, she gets your basis on the half you give her now rather than it stepping up on your death.

Being on the deed isn't like some club membership, it means you are giving away half of the house to the other person.