Remember these tips to make sure your children can inherit your home.
For many people, their home is their most significant and most valued asset. They will likely have specific wishes for what happens to their home after their death. In many cases, individuals will want to pass on their home to their adult children. When creating your estate plan with your Millman Law Group attorney, your attorney can help you determine the best ways to guarantee that your children inherit your home. Besides writing this wish into your Will, there are various other options available that may be more convenient for everyone involved.
Outline Your Wishes in Your Will
Most people will first choose this simple option to pass down their assets. Your Will permits you to decide who inherits your property. Without a Will or other form of transfer to your children, however, your house would be distributed according to state laws.
Joint Tenancy with Right of Survivorship
Another way to guarantee that your children inherit your home is to title the house directly in your and your children’s names. After your death, the home passes directly to the children listed on the title. This can be appealing because it will not have to pass through probate before your child can claim ownership. However, joint ownership comes with some risks. For example, if your children file for bankruptcy, go through a divorce, or have judgment debts, your home would be subject to those actions. This can also create tax issues while you are living and may not align with your overall estate planning goals.
A Living Trust
A living trust helps your children inherit your home. The trust holds title to your home during your lifetime, and after your death, the property can remain in the trust for the benefit of your children. Alternatively, it can pass directly to your children without going through probate.
Transfer Property on Death
Another option is titling your home so that it passes to your children upon their death. While you are alive, you have the right to sell or mortgage the home. At the time of death, the property is immediately transferred to your child for ownership. This is termed a Ladybird Deed or Enhanced Life Estate Deed.
Can You Leave a Home to Minor Children?
The Uniform Transfers to Minors Act (UTMA) determines how assets are transferred to minor children through your Will. You must choose a custodian to manage the property until your child is between the age you designate between 18 and 25. The custodian will manage the property until your child reaches the age specified in your Will. At that time, the home would be transferred to your child.
However, a trust may be a better option for ensuring that your minor children inherit your home. Trusts give you flexibility in managing your child’s inheritance, and you can also use it to prevent your child from receiving control over the property within the trust until they are older than 25.
Estate Planning Made Easy With Millman Law Group
Millman Law Group, PLLC is rare because it’s one of the only law firms that offer life planning in South Florida. From life care planning to the preparation of detailed estate plans, Millman Law Group has committed to serving Floridian elderly communities in Boca Raton, Palm Beach County, Ocean Ridge, Hillsboro Beach, and many other areas since 2018. Our dedicated team also specializes in special needs Trusts and catering to any age demographic because we know for certain it’s never too early to start preparing you and your family for your future. For the latest news in estate planning and elder care law, follow us on Facebook, Twitter, Linked In, and Pinterest. You can also contact us at 561-463-6480.