Estate planning is an effective and efficient way to transfer your assets to your loved ones after you pass away. Your home is likely your most significant one, and deciding where it will go and how that will happen is a challenging component of the estate planning process. This is why it is so critical to begin your planning early. The later your wait, the more limited your options will be. To get you started, we are providing you with several ways in which you can pass down your assets to your beneficiaries.
Joint Title With Rights of Survivorship
The reason we bring this up is twofold. It highlights the importance of titling your assets (a critical component of proper estate planning) and points out why you still need an estate plan. Some people choose to jointly title their home with their children and give them rights of survivorship. When you pass away, they will automatically become the legal owners of the house. Furthermore, the house will not pass through probate.
However, we seldomly recommend this because of some possible adverse tax effects. Additionally, you are actually giving away a portion of your home while you are still alive. They will need to sign off on the house if you choose to sell it. Secondly, should they consent to the sale of the home, they are also legally entitled to their share of the proceeds.
Draft a Will
Wills enable you to choose a guardian for your guardian and beneficiaries for your assets. You can include your home in a will and select who receives it when you pass away. Although it highly depends on the specific circumstances, you can anticipate the probate process to take six to nine months. Wills do not enable you to bypass the probate process.
Your beneficiaries will not receive any of your assets until they have gone to probate, creditors have been notified, and debts have been settled.
Creating a Revocable Trust
Revocable trusts are powerful estate planning tools. Revocable Trusts can help avoid probate altogether, will get your assets to your intended beneficiaries, and can hold the assets after you pass away, until such time as your children, or grandchildren reach a financially responsible age to receive their share of your assets. After you pass away, your successor trustee will manage the trust and distribute your assets per your wishes.
Get in Touch With an Estate Planning Today
Take control of your assets by creating an estate plan. Everything you own gets distributed according to intestate laws when you pass away without one. You and your wishes will have no say in the matter. The attorneys of ElDeiry & ElDeiry, P.A., can create wills and trusts that meet your specific needs and goals. Contact us today to schedule a consultation.
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