Legal Tip 241: 4 different ways to Add a Spouse to the Title of a property

There are 4 different ways that a spouse, or anyone for that matter, can be added to the title of a property.

a) Gift – no consideration given
b) Under market value transfer
c) Market value transfer
d) As trustee


Each of the above has different legal, tax and loan issues.

For example, if you make a gift

- Stamp duty issues – may be exempt in some states in some situations
- The gift can be challenged upon death
- The gift can be clawed back on bankruptcy
- The gift can be challenged on a family law dispute (e.g. if there was a second or previous spouse)
- Any loan that was on the property will no longer be deductible in full.
- Estate planning outcomes will differ
- CGT will apply at market values, unless an exemption applies.

Get some legal advice before contemplating adding someone to the title -whether spouse or not.

 

e). Death of a joint tenant can change ownership too. Cant add someone as such but can go from 50% to 100%

 

f) Family Court.