What Happens With Your Property When You Die? Three Options to Consider
For most people, their home is their most valuable asset. It’s likely that you already have a clear idea about who you would want to have in your home when you pass away. Most parents will want their children to inherit their home. However, making sure that these wishes eventually become reality takes some planning. During estate planning, you might include your home in your will, transfer it to a living trust, or include the right words in the deed to your home. There are pros and cons to all the options, so it’s recommended that you consult with an estate-planning attorney in order to ensure that you choose the option that is best for you.
Including Your Home in Your Will:
A will is a legally binding, written document in which you specify who you wish to inherit your assets when you die. You may name one person or several people, each of whom is referred to as a beneficiary. After you die, all the assets included in your will go through probate, which is a process that ensures the legal transfer of your assets to your beneficiaries, according to the terms of your will. If you designate more than one person to inherit your property, each beneficiary will inherit an undivided interest in it. They must then decide whether to keep or sell the home, and they may not see eye to eye. If you are concerned that this might happen, specialized lawyers such as clinelawyers.com can help you specify your wishes in your will.
A living trust is a trust that you create while you are still alive, which allows you to transfer any assets that you want to be controlled by the trust. You can manage and benefit from these assets in the same way while you are still alive, but when you die, the assets will be transferred to any beneficiaries that you designate in the trust document. This option offers several advantages over using a will. The home will be passed to your designated beneficiary without the need for probate, allowing it to be transferred to the individual or individuals more quickly. You can also avoid any conflict regarding what to do with the property by naming an individual or institution to oversee the distribution of assets after your death.
Including the Right Words in the Deed to Your Home:
Including ‘Transfer on Death’ in the deed to your home allows you to give your home to a loved one or loved ones in the event of your death without the delays of probate or the cost of setting up a trust. With Transfer on Death, you own your home 100% while you are alive and are free to do whatever you like with it, but when you die, your property will automatically and immediately be transferred to the person you named as the beneficiary in the deed.
Deciding what to do with your home after you die can be confusing, particularly if you have several beneficiaries in mind. Consulting with an experienced lawyer can help you choose the right option for you and your family.