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Adding someone to your house deed as a joint tenant with the right of survivorship allows the property to pass directly to that person upon death, avoiding probate. This means if either party dies, the other automatically owns the property outright. However, a significant drawback arises if the property has appreciated in value; it will be passed at the original purchase basis. For instance, if a house bought for $100,000 is now worth $1 million, it will still be inherited based on the original $100,000 value. This method, though convenient for transferring properties, may lead to potential tax disadvantages due to the appreciation in value.
