A home is often your most valuable asset. And if you’re a parent, you probably want your children to inherit the home. However, it takes estate planning to ensure that the family home stays in the family.
Three Options to Pass Your Home to Your Children
The estate planning process provides three options for leaving a home to one or more children:
- A will. This legal document allows you to specify whom you want to inherit your assets. All assets included in a will go through probate, which is a court-supervised process for ensuring that the transfer of assets to your beneficiaries is in compliance with the will’s terms. However, any debts you owe when you die will have to be paid first. If you have multiple beneficiaries, each will inherit an undivided interest in the home. This means that they have to agree on its disposition, which might be difficult if any siblings are estranged.
- A living trust. This allows you to transfer the home to the trust and to manage and benefit from the asset. A living trust avoids probate and the related expenses, but outstanding debts will still need to be paid first. Any potential for conflict between beneficiaries is addressed by appointing a trustee as the decision-maker over the assets.
- Transfer on death or joint tenancy. Including certain language, such as “Transfer on Death” or “Joint Tenant with Right of Survivorship,” can help you avoid probate as well as the cost of a living trust in the deed to the home. These phrases ensure that upon your death, the beneficiaries you named in the deed become the owners of the home.
Consult a Lawyer
Each of these estate planning options has benefits and drawbacks, which means that the best option depends on your goals, finances, and other factors. The estate planning attorneys at TuckerAllen can help weigh these factors and guide you through whichever process you choose.