Is there anything wrong with adding a child’s name to my home, my bank accounts or investments? YES! There are two major problems created by such a move: (a) You have made a gift for federal gift tax purposes, which could cause more estate tax at your death (depending upon the size of your estate); and (b) you have made a gift to that child for Medicaid qualification purposes. As for Medicaid, if you make that gift and end up in a nursing home within five (5) years and run out of assets, the State of Ohio will not pay for your nursing home care. This should be thoroughly discussed with your estate planning attorney.
-Attorney Jack N. Alpern