Why Transferring Home Ownership Does Not Replace an Estate Plan
Posted On: July 22nd 2023
It can be tempting to avoid the costs of creating an estate plan when your only significant asset is your home. Afterall, what’s the harm of simply putting your home in your child’s name to avoid probate and be done with it?
We hear this question more than you’d think at our office, and we almost always advise against it. The truth is, there are a number of reasons to keep your home in your own name, the biggest ones being property taxes and your child’s liabilities. Other reasons include:
Is your relationship with your child as good as you think?
Putting your home in only one child’s name can cause a rift between siblings. Alternatively, if you put the home in the names of all your children, it can make the home more vulnerable to liabilities and paperwork errors.
Have you considered a Revocable Living Trust?
A revocable living trust is a legal arrangement that allows you (the grantor) to transfer your assets, such as property, investments, or bank accounts, into a trust during your lifetime. The trust is managed by a trustee of your choosing, who can be yourself initially, and specifies how the assets should be handled and distributed both during your lifetime and after your death.
A Revocable Living Trust can be a safer way to avoid probate. A Revocable Living Trust is flexible and reliable, and doesn’t have to be expensive. In fact, a Revocable Living Trust can actually save your family money in the long run!
Planning For Your Future
Don’t make a mistake that could end up causing you to lose your home. Contact our office to discuss how we can help you protect your family and your assets from probate and liabilities.