Estate planning is your means to plan for your future today. And you can do so with an estate planning attorney to advise you throughout the process. By preparing now, you will enter into future conversations with your lawyer with the beginnings of a plan. It can be shaped and protected as needed, but the basis will—and will always be—your wishes.
When you review your assets and decide who will receive them, you may pause when you get to your home. Why? Your home is not only your most valuable asset, but it is the source of a lot of memories. By giving it to one person, are you going to cause a rift with someone else? These are the exact types of things you are trying to avoid by estate planning early.
How To Plan For Including A Home In Your Estate Plan
If you have decided what you want to do with your home, tell your family. At least, make your plans known. They may voice ideas or concerns that you hadn’t already thought of. For example, if you had decided to leave your home to one of your children, that child may not be in a position to take on that responsibility. Perhaps they have plans on moving away.
Another issue that may arise is that you could tell your children that you want the home to stay in the family. Some family members might prefer to sell the family home. These are difficult conversations to have, but this is the exact reason for having them.
The Cost Of Ownership
Before you decide who will receive your house, figure out how much it will cost the recipient. Most people assume that you simply pick up the mortgage payment when you receive someone’s house. But that may not be the case. Take a look at your mortgage and see if there is a “due on sale” clause in it.
When you sell your home, whatever is owed on your mortgage gets paid off. Depending on your mortgage, this may happen if you pass away. If those are the conditions, who will be in a financial position to handle your mortgage? And does this alter your plans if you want your home to stay in the family and not go up for sale?
Options For You
Ask your attorneys about the possibility of either creating a will or a revocable trust. These are two different documents that function uniquely. Anything you put into a will becomes an asset that will pass through probate.
Older people may opt to use a revocable trust. By using a revocable trust, you can continue to use and own your home. However, you choose a trustee who will take over your assets. After you pass away, the trustee distributes your assets based on your wishes.
The Matus Law Group
Whether you plan on amending your estate plan or developing one, contact The Matus Law Group. There are financial and legal implications associated with the assets you put in an estate plan. We can take your wishes and put together a strategy that fits your unique situation.