The Hidden Risks Illinois Families Don’t Know About
Many Illinois parents believe that adding an adult child to the deed of their home is a simple way to “avoid probate” or “make things easier.” It sounds appealing — one form, one signature, and the house automatically transfers when you pass away.
But while the intention is good, the consequences can be far more complicated and expensive than most families realize.
Before you make a change that’s difficult (and sometimes impossible) to undo, here’s what adding a child to your home’s title really means under Illinois law.
The Myth: “If I put my child on the deed, the house won’t go through probate.”
The truth: Yes, adding a child as a joint owner might avoid probate — but it often creates bigger problems than it solves.
Illinois offers safer, cleaner, and more flexible tools for avoiding probate (like a Transfer-on-Death Instrument or a Revocable Living Trust). Adding a child to your deed is usually the most risky option.
The Hidden Risks of Adding a Child to Your Home’s Deed
1. You Lose Full Control of Your Home
Once your child becomes a co-owner:
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You cannot sell the home without their signature
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You cannot refinance without their approval
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They legally own part of your property — even if you paid for all of it
If the relationship changes, or if they simply disagree with your plans, you may find yourself stuck.
2. Your Child’s Creditors Can Come After Your Home
This is the most common — and most devastating — risk.
If your child becomes a co-owner, their portion of your home becomes fair game for:
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Creditors
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Bankruptcy trustees
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Divorce settlements
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Lawsuits or judgments
You could wake up one day and learn that your home is now part of someone else’s legal battle.
3. Major Capital Gains Tax Problems
This is the tax mistake Illinois families rarely hear about.
When a child inherits a home after your passing, they typically receive a step-up in basis, meaning they pay little or no capital gains tax when they sell the property.
But if you add them to the deed during your lifetime?
They lose that tax benefit, and they may face a large tax bill if they ever sell.
4. Medicaid Penalties and Nursing Home Issues
Adding a child to your deed is considered a gift under Medicaid rules.
This means:
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It can trigger a five-year lookback penalty
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It may delay eligibility for long-term care benefits
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It could force the family to pay privately longer than necessary
This one mistake can cost tens of thousands of dollars.
5. You May Accidentally Create an Unequal Inheritance
If you have more than one child, adding one child to the deed automatically:
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Gives them a larger share of your estate
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Creates tension among siblings
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Opens the door to probate disputes
Even if you “intend to make it fair,” the law may not see it that way.
Better, Safer Options for Illinois Families
Instead of putting a child on your deed, consider these alternatives:
Transfer-on-Death Instrument (TODI)
A simple form that keeps you in 100% control but avoids probate at your passing.
Revocable Living Trust
The gold standard for avoiding probate and ensuring smooth administration.
Traditional Will + Proper Beneficiary Designations
Works well for families with smaller estates or uncomplicated assets.
Each of these options helps you avoid the risks while accomplishing the same goal.
Bottom Line: Adding a Child to Your Deed Is One of the Riskiest Estate Planning Moves
It’s understandable that you want to make things easier for your family. But adding a child to your deed often creates tax problems, legal exposure, and long-term complications that outweigh any benefit.
Before making changes to your home’s title, talk to an Illinois estate planning attorney who can walk you through safer alternatives.
Have Questions? We’re Here to Help.
If you’re wondering whether a TODI, trust, or another solution is right for your family, we’d be happy to guide you.
Contact the Law Office of Jonathan W. Cole P.C. at (708) 529-7794 — “Your Neighborhood Law Firm.”
