When families in Minnesota begin to craft their estate plan, one of the biggest obstacles they’re going to face is how to pass down their home. This is understandably a very complex thing to handle as there is a lot of money hanging in the balance within a home. Because of these reasons, it is important to take your time and understand how you should approach this part of your estate plan. The following includes a list of things to keep in mind when you arrive at the area of an estate pan where the home comes into play.
Get everyone invovled
Estate planning is never something you should do alone. Instead, ensure that your immediate family is involved in the conversation regarding your home. For example, if you like to leave your children the home, you are going to want to ask what they think first. You may be surprised about what you hear as some children may simply want to sell the home and split the money amongst each other. This is very common with adult children who may already have a home for themselves.
Legal options to pass down your home
If all your children want ownership of the home, you may add a co-ownership to the home’s current deed. Once you pass away the deed then transfers ownership to your children. It should be noted that if you choose this option, your children may end up paying a gift tax once you have passed away. You may also utilize a will to transfer your home. Although effective, a will is a public document, and thus you may have little to no privacy regarding who you appointed as the next owners.
There are a lot of components to think about regarding your home. Therefore it is important to bring in an experienced attorney to help you navigate serious legal obstacles that you might face.
