Adding someone (non-spouse) to a home title

[AtlRick]

Jurisdiction

South Carolina

My older brother in South Carolina wants to add me to the title of his home so that when he passes, I will become the owner and presumably this would simplify matters compared to only listing me as his sole heir in his Will. He owns the house fully and it is paid off.

He is not sure how to go about this exactly. I live nearby, in Georgia but from what I read of South Carolina law, he would need to get a new title that lists both of us as holding joint tenancy with right of survivorship. Is this accurate? Does this need to be done by an attorney or can a title company do it? Do we need to both go together to an office to sign in person to accomplish this? And any idea of how much this typically costs?

I am currently already listed on him as a direct beneficiary of various accounts, insurance, 401K, and so forth. But it is our understanding that a home cannot be passed by that kind of assignment of a beneficiary.

 

[Tax Counsel]

I live nearby, in Georgia but from what I read of South Carolina law, he would need to get a new title that lists both of us as holding joint tenancy with right of survivorship.

That's how it's done in at least most states when adding someone other than a spouse to the deed.

Does this need to be done by an attorney or can a title company do it?

It should be done by an attorney as drafting the deed for others is the practice of law, which means only a lawyer is permitted to do it. A title company may have a lawyer, however, that can do that for you. You can ask. When it comes to a deed, you want to be sure it's done correctly or you may fail to achieve the goal you want, and after he dies it is too late to fix it.

He should be aware that by doing this is making a gift to you for federal gift tax purposes and may need to file a gift tax return with the IRS. Although if it is done this year he wouldn't owe any tax unless he's already given away millions of dollars in gifts. Nevertheless the return is required he makes gifts to any one person during 2024 that exceeds $18,000 in value.

He should also be aware that there is more than one way to achieve his goal of transferring his home to you should he die before you do that would still avoid probate. It would probably be a good idea for him to discuss an estate plan with an estate planning attorney. Doing that will help him achieve his goals with the least potential downsides and the least in taxes and other costs.

 

[adjusterjack]

Yes, it would take a new deed.

He would be deeding ownership of the property from himself to the two of you.

You don't have to appear together to sign it. He can have it created in South Carolina and express mail it to you for your signature.

As to the cost. DIY with a quitclaim deed costs only the recording fee.

If he wants a lawyer (recommended) or title company to do it he can call around for prices.

 

[zddoodah]

presumably this would simplify matters compared to only listing me as his sole heir in his Will. He owns the house fully and it is paid off.

Maybe. That assume he adds you to the title in a manner that results in title passing to you "automatically" when he dies, which he apparently doesn't know how to do. I assume he's also not aware that there are other methods of avoiding probate that might be better for him and/or you.

Also, since you didn't mention a spouse or children, I'll ask you to confirm that your brother has neither.

from what I read of South Carolina law, he would need to get a new title that lists both of us as holding joint tenancy with right of survivorship.

That's one way to do it.

Does this need to be done by an attorney or can a title company do it?

A "title company" is short for title insurance company. Title companies exist to write policies of title insurance. Sometimes they also provide escrow services. AFAIK, they don't provide document preparation services. Since your brother doesn't know what he's doing, he should hire a lawyer to ensure that what he wants to happen will happen.

Do we need to both go together to an office to sign in person to accomplish this?

If all he does is execute a deed that transfers title from himself to himself and you jointly, you would not need to sign anything. Even if there were something you needed to sign, that could be accomplished by having the document(s) emailed to you with you printing and signing them and returning them by overnight mail.

And any idea of how much this typically costs?

Simple deed preparation and recording shouldn't cost more than a few hundred dollars.

 

[adjusterjack]

I am currently already listed on him as a direct beneficiary of various accounts, insurance, 401K, and so forth. But it is our understanding that a home cannot be passed by that kind of assignment of a beneficiary.

Another option is for your brother to create a Revocable Living Trust with you as successor trustee and beneficiary. The property deeded to the trust. Upon his death you become trustee and can execute as deed from the trust to you, the beneficiary.

 

[AtlRick]

Another option is for your brother to create a Revocable Living Trust with you as successor trustee and beneficiary. The property deeded to the trust. Upon his death you become trustee and can execute as deed from the trust to you, the beneficiary.

Can a Revocable Living Trust (or an Irrevocable one, for that matter) be done without an attorney? There seem to be various organizations and sites (examples: NOLO, LegalZoom) that provide forms and step-by-step processes that purport to allow you to at least make basic Wills and Trusts online for modest amounts, but I don't know how safe it is to go that route.

 

[AtlRick]

Also, since you didn't mention a spouse or children, I'll ask you to confirm that your brother has neither.

He has neither a spouse nor children.

He was married for a few years, about 35 years ago, but then divorced. His former wife passed away years ago. They didn't have any children together. (Although she had a couple of kids prior to their marriage and now they are adults, but hard to imagine that has any bearing on his Estate, since he was long divorced at the time he acquired the current home).

 

[adjusterjack]

Can a Revocable Living Trust (or an Irrevocable one, for that matter) be done without an attorney? There seem to be various organizations and sites (examples: NOLO, LegalZoom) that provide forms and step-by-step processes that purport to allow you to at least make basic Wills and Trusts online for modest amounts, but I don't know how safe it is to go that route.

There's always a risk involved in doing legal stuff without a lawyer.

You have to weigh the potential consequences against how much money you save.

Like the old oil filter commercial.

You might save $1000 by using the DIY forms but your heirs may have to spend tens of thousands on probate if you missed something.

If you decide to DIY you certainly have to thoroughly educate yourself on the legal processes that are involved so that you have a better chance of getting it right.

 

[Tax Counsel]

Can a Revocable Living Trust (or an Irrevocable one, for that matter) be done without an attorney?

A person may draft their own trust instrument, but unless the person knows the state trust laws and the related federal and state tax laws, that person is likely to make mistakes that either will end up not achieving what he/she wants or that ends up costing them, their trust, and/or their beneficiaries a lot more money than had it been done another way. For example, there are significant differences between revocable and irrevocable trusts, including very different tax treatment. Without going into the details, in general an irrevocable trust is not a good choice from a tax perspective, though other priorities of the person creating the trust may mean an irrevocable trust is the best choice overall. Consulting a trust attorney can help avoid the pitfalls of doing it yourself when you aren't an expert in the area.

A person who is not a lawyer cannot draft a trust for someone else. Doing so is the unauthorized practice of law.