I want to add my two adult children (31 and 33) to Title, so they will be able to inherit the house and avoid sale taxes (I assume it would work this way -- am I correct?).
Do NOT do this ... it is a bad idea. First they will not inherit the property since they will already be owners since you gifted them part of the property at your cost so they will not get the stepped up basis on the entire home. And if they are ever sued or file bankruptcy then your home could be taken. A better idea is to put home in a revocable trust to avoid probate & get the stepped up basis at death.
Seek help to do some tax/estate planning since there are also medicare rules to take into consideration.
