The Hidden Risks of Adding Your Adult Child to Title

Why real estate lawyers urge caution before making a change to one’s property title

By Slonee Malhotra

It is becoming increasingly common for parents to add their adult child to title as a Joint Tenant of their primary residence as a shortcut to avoid probate fees and simplify their estate planning. While this intention is often well-meaning, this strategy frequently leads to unintended and heavy consequences.

Generally, it is not advisable to add a child to title solely to avoid probate. The potential for tax liability, loss of control, creditor exposure, and family conflict often exceeds the modest savings in probate fees. In some circumstances, it does not actually avoid probate and probate fees are still payable.

A 2026 case from the Ontario Superior Court of Justice, Ramotar v. Ramotar, serves as a stark reminder that once a homeowner transfers an interest in their home, that interest may be difficult, if not impossible, to recover.

In Ramotar, shortly after her husband’s death, an 88-year-old widow transferred her Scarborough home out of her late husband’s name and into joint tenancy with her son.^[1] However, when their relationship worsened, the mother sought a court order to strip her child of his interest to restore herself as the sole owner of the property.^[2] She alleged that the original transfer to joint tenancy was for asset management purposes and that she was in a grief-induced fog when she signed the documents.^[3] The court found that the parent intended to make a gift as opposed to a trust, and the mother effectively lost 50% of her equity once she signed the title transfer to joint ownership.^[4] Ultimately, the Court did not restore sole ownership for the mother, ruling that the transfer to her son was a permanent and irrevocable gift that could not be retracted simply because she later regretted it.^[5]

My colleague previously wrote about the importance of clearly documenting one’s intention in gifting property to an adult child for that child’s own use vs. appointing an adult child to manage property on one’s behalf (i.e. through a trust) here.

Before one transfers a partial interest in property to an adult child, one must consider the following warnings:

• Gifts of Property Are Permanent and Irrevocable: Once a gift is legally recognized, there is no going back. Claiming that the family relationship has deteriorated is not grounds to reverse the transfer. At most, the joint tenancy may be severed, however this results in the ownership structure changing to equal shares as Tenants In Common.
  • Read more about Joint Tenancy vs. Tenants in Common here.
  • Read more about Co-Ownership Agreements here.
• The Loss of Unilateral Control Over the Property: Once a child is added to title, the child becomes a legal co-owner of the property and the child must agree to permit any future transfer or refinance of the home. The parent is no longer able to make unilateral decisions.

• The Increased Susceptibility to Family Disputes: Adding a child to the exclusion of others is a frequent catalyst for litigation between siblings after a parent passes away. Where a child is added to title for estate planning purposes only, a Trust Agreement should be prepared. Without clear written documentation, the arrangement may be misunderstood as an advance gift or as a promise of inheritance.

• The Increased Risk of Exposure to the Child's Creditors: Adding one’s adult child to title exposes the home to creditors of the adult child. If one’s child faces bankruptcy, a business lawsuit, or a marital breakdown, their creditors or an ex-spouse may place liens or judgments directly against the property to satisfy the adult child's debts.
• Potential Unexpected Tax Consequences: Transferring an ownership interest to a child can trigger both Land Transfer Tax and capital gains tax. The Canada Revenue Agency (CRA) may view the transfer as a disposition of the property at fair market value, potentially triggering immediate capital gains tax for the portion which is no longer the parent’s principal residence. Further, where the property is sold during the parent’s lifetime, the adult child may face capital gains tax on their interest in the property where the property is not that child’s principal residence.

As a real estate lawyer, I cannot stress enough how important it is to seek advice before making any change to title. A title transfer is not merely an administrative step; it is a legal decision that may affect ownership rights, tax exposure, estate planning, creditor risk, and family relationships for years to come. Before adding an adult child to title, a homeowner should understand not only what the transfer is intended to accomplish, but also what rights are being given away, whether the arrangement should be documented as a gift or a trust, and how the transfer fits within the homeowner’s broader estate plan. Making a transfer without reviewing (or creating) a Will and the overall estate plan can have serious consequences for your loved ones and beneficiaries. 

At SorbaraLAW, our real estate team works closely with our estate administration team to ensure that decisions are approached carefully and with the necessary documentation in place. Our goal is to help our clients preserve their intentions, reduce the risk of future disputes, and ensure that any title transfer is consistent with their overall wishes. Taking the time to obtain coordinated legal advice at the outset can help avoid costly misunderstandings, unintended gifts, and difficult litigation later.

If you have any questions about transferring title, contact Slonee Malhotra (slonee@sorbaralaw.com) at SorbaraLAW.