Should You Add Your Children to the Title of Your Home?

Adding your children to the title of your home might seem like a simple way to protect your assets or make inheritance easier. But the legal and financial implications can be much more complex than many families realise.

In Victoria, adding a child to your property title is a decision that affects your legal ownership, tax position, and even Centrelink entitlements. It can also expose your home to unexpected risks if your child experiences financial difficulty or relationship breakdowns.

Before you make this decision, it’s important to understand what it actually means – and the potential consequences for your estate plan.

■ What Does It Mean to Add Someone to Your Property Title?
Adding a child to your property title means you are transferring part ownership of your home to them. You may choose to make them a joint tenant (with equal rights to the whole property) or a tenant in common (owning a specific share).

Once the title is transferred, your child becomes a legal owner of the property. That means they will have legal rights and responsibilities over the home, which also includes potential exposure to tax and financial claims.

This isn’t the same as simply including your home in your Will. Transferring ownership now changes the legal structure of your asset while you’re still alive.

■ Risks of Adding Children to the Title of Your Home
Before you change the title, you should consider the following legal and financial risks:

1. Capital Gains Tax (CGT)
If your child does not live in the home as their principal residence, their share of the property may be subject to capital gains tax when the home is sold.

2. Stamp Duty
In Victoria, adding someone to your title may trigger stamp duty. This depends on whether they pay you for the share and how the transaction is structured. It’s not always tax-free.

3. Asset Exposure
Once your child becomes a legal owner, their share of the property could be affected by:

Bankruptcy or debt recovery
Family law disputes in the event of separation or divorce
Financial or legal claims against them personally
4. Loss of Control
If your child is a joint owner, you may no longer be able to make decisions about the home (such as selling or refinancing) without their consent.

5. Centrelink Implications
Transferring part of your home may be seen as gifting under Centrelink rules. This can impact your Age Pension or other entitlements.

6. Disruption to Your Estate Plan
Adding a child to your title now may unintentionally exclude other beneficiaries in your Will. It can also increase the chance of estate disputes if the arrangement isn’t clear or consistent with your estate planning documents.

■ Why Some People Still Consider It
In some cases, people want to add children to their home title to avoid probate or reduce legal steps after death. It also makes inheritance more efficient and protects the home from being sold to fund aged care.

While these goals are understandable, adding someone to your title is rarely the best solution. There are usually other estate planning strategies that can achieve the same goals with fewer risks. Talk to an estate planning lawyer like Bayside Wills and Estates to discuss your options before making any of these decisions.

■ What to Do Instead
If you want your child to receive the family home after you pass away, you can:

- Include the property in your Will
Use testamentary trusts for asset protection and tax planning
Appoint your child as the executor of your estate (if appropriate)
These approaches allow you to retain full ownership and control while alive, and reduce the chance of conflict or legal problems later.

- Always Get Legal Advice Before Making a Change
Property and estate planning decisions are deeply connected. A well-intentioned move like adding your child to your home title could end up causing unintended tax issues or disputes among family members.

Before you make any decisions, it’s important to get personalised legal advice.

At Bayside Wills and Estates, we help families across Victoria understand the full implications of their choices and create estate plans that protect their wishes.

If you’re considering adding your child to your title, or want to update your Will or estate strategy, book a free consultation with our estate planning lawyers.

Global Validation: Why You Need a Notary Public for International Documents

A Notary Public is a highly experienced solicitor appointed by the Supreme Court to verify and certify legal documents for use in foreign countries. This service ensures your personal or business documents are globally recognized, preventing costly international delays.

The Critical Role of a Notary Public

If you need to use a legal document—such as a Power of Attorney, a property deed, or a business certificate—outside of Australia, simply having it witnessed or certified by a local Justice of the Peace (JP) is generally insufficient. You need a Notary Public.

A Notary Public provides the highest level of certification, formally verifying the authenticity of signatures, corporate standing, and original documents so they are accepted by foreign governments, courts, and institutions worldwide.

Notary vs. Justice of the Peace (JP)
While both roles involve witnessing, a Notary Public has a distinct and higher level of authority, especially for international matters:

Notary Public
Qualifications: Highly experienced solicitor (usually 5+ years) appointed by the Supreme Court.
Authority: Internationally recognised, primarily for documents to be used overseas.
Cost: Services are fee-based.

Justice of the Peace (JP)
Qualifications: A volunteer appointed by the state government.
Authority: Primarily for domestic Australian use.
Cost: Services are legally required to be free.

Common Notary Services
Notary services are essential for a wide range of personal and commercial needs, including:

Personal Matters: Witnessing signatures on international Powers of Attorney, verifying identity and signatures on overseas affidavits and statutory declarations, and certifying copies of educational qualifications or passports.

Commercial Matters: Confirming the legal status of an Australian business (e.g., Certificates of Good Standing) for trade or contracts overseas.

The Final Step: Apostille or Authentication

After notarisation, many countries require an extra layer of certification, known as Apostille or Authentication, issued by the Department of Foreign Affairs and Trade (DFAT). A full-service Notary Public can manage this entire process for you, ensuring your documents are fully legalised and ready for immediate use overseas.

If your critical documents are crossing borders, using an experienced Notary Public is the necessary step to guarantee validity, prevent delays, and gain global peace of mind.

Learn More: https://www.baysidewills.com.au/services/notary-services/

The Power of Planning: Why You Need a Medical Power of Attorney Now

A Power of Attorney (POA) is the most important document you can sign to ensure your financial and medical wishes are honored if you become incapacitated. It allows you to choose who makes critical decisions on your behalf, preventing family distress and court intervention.
The Essential Gift: Taking Control of Your Future

A Power of Attorney (POA) is a foundational document in estate planning that allows you to appoint a trusted person (your Attorney or Agent) to act on your behalf if you lose the legal capacity to make decisions due to illness or injury.

In the context of an Enduring Power of Attorney (EPOA), this appointment is split into two critical areas:

1. Financial/Personal Matters: Your Attorney manages bills, investments, property, and decisions about your living arrangements and support services.
2. Medical Treatment Decisions: This separate, vital power ensures your healthcare wishes are followed during a crisis.

Medical Decisions: Ensuring Your Wishes Are Honored

The person you appoint to handle your health choices is often referred to as a Medical Treatment Decision Maker (or Healthcare Agent). This role is crucial because they are empowered to:

• Consent to or refuse specific medical treatments.
• Make decisions about your long-term care and where you receive it.
• Access your medical records to make informed choices.

By putting this document in place, you ensure that the person making life-altering choices under pressure understands and respects your personal values, religious beliefs, and preferred medical outcomes.

The Danger of Delay: When the State Decides

A POA can only be created while you still have the necessary legal capacity. If you become ill or suffer an accident before signing one, it is too late.

Without a valid POA or Medical Treatment Decision Maker appointment, your loved ones may be forced to apply to a court or tribunal (like VCAT in Victoria) to appoint an administrator or guardian. This process is often:

• Costly and Time-Consuming: It adds immense stress to an already difficult time.
• Lacks Personal Choice: A court-appointed guardian may not be the person you would have chosen.
• Creates Conflict: It can fuel disputes among family members over who should be in charge.

The time to secure your peace of mind and protect your family is now, while you are healthy and clearly able to express your intentions.

Learn more: https://www.baysidewills.com.au/blog/power-of-attorney-vs-medical-decision-maker-vic/