Your home is an asset that supports your future financial security and can be passed along to loved ones after you’re gone.
There are some estate planning rules that homeowners need to consider in order to get the most out of their investment. More importantly, the right estate plan ensures that family members receive assets according to your wishes.
The following helps you understand the estate planning strategies you can use to protect the value of your home and the future wellbeing of your beneficiaries.
Estate Planning Concerns for Homeowners
For most people, a home is the largest asset they own. So including it in your estate planning process is critical to you and your family’s future.
The transfer of ownership of a home increases the complexity of the estate planning process. Consult with a skilled estate attorney to determine the options that are best for you.
Disagreements among family members lead to costly legal conflicts related to your home. Determining who would like to own your home after your death is an important step in creating the right plan for the future.
Estate planning protects spouses who are left behind only to have to continue paying a mortgage. You protect your family members by creating the right estate plan that meets all of your needs.
Benefits of Estate Planning for Today’s Homeowners
Your estate plan lets you manage and distribute your assets for the benefit of loved ones. It protects them from probate, tax burdens, creditors, and other financial issues.
You can place your home and other assets into a trust to avoid the cost and time required to complete the probate process. It gives you greater flexibility in managing your property and maximizing its value over time.
Discussing financial goals with your family and estate planning attorney is the first step to transferring ownership of your home.
There are many options for protecting your real estate investment including revocable trusts and qualified personal residence trusts.
Beneficiaries may need to deal with legal fees, property taxes, and other financial obligations when they receive a home. So you need to consider how you’ll transfer ownership in a way that protects them and prevents any issues after you’re gone.
Creating the Right Estate Plan for Your Home and Family
You’ll need to organize all of the documents and financial statements related to your home and other assets. The value of your estate determines what planning strategies and tools you’ll need.
Creating a will ensures that your wishes are carried out at the time of your death. But a will isn’t enough to fully protect your home and estate.
A will doesn’t prevent assets from going through the probate process. This increases the costs and time required to transfer ownership to your beneficiaries.
A revocable trust lets you maintain control of your real estate property during your lifetime. It specifies how your home and other assets will be distributed when you’re gone.
Assets in a revocable trust do not go through probate. This reduces delays and expenses that would otherwise be required. It also keeps your family’s financial information from becoming public record.
A qualified personal residence trust may be used to transfer real estate property you own at a reduced cost. You can stay in your home throughout the duration of the specified time period.
Ownership is transferred once the end date has been reached, making it easy for you to give your home to your children or other beneficiaries.
There are many considerations to make when using wills, trusts, and other estate planning tools. Consult with your legal professional to make sure that you understand how each benefits your financial plan.
Your home may be your most valuable investment. Protecting it is the key to greater financial security.
With an estate plan that’s customized to your needs, you enhance the value of your assets while giving your loved ones the support they need during and after your lifetime.