When it comes to deciding the best way to transfer ownership of your family home upon your death, there are numerous factors to be considered. Contact HW estate planning attorney Steven Heinl to schedule an initial consultation to get the conversation started. #wills #trusts #marylandlawyer
When it comes to estate planning, a family home can be among the most valuable assets to be passed down. Generally speaking, there are three ways for leaving a home to your heirs: 1) Last Will and Testament: You can use your will to designate to whom the home should go and in what proportions. While designating through your will may achieve the desired end result, the home will go through the probate process, which will slow down the transfer or sale of the property for your beneficiaries. 2) Life Estate Deed: In Maryland, a homeowner has the option to re-title their real property into what is known as a life estate deed. There are different types of life estate deeds, so be sure to consult with a competent estate planning attorney to determine what is best for you. This type of deed allows for the real property to be transferred to the desired beneficiaries outside of probate upon your death. Your real property will also receive the benefit of a stepped-up basis for tax purposes, which can save your beneficiaries thousands of dollars in capital gains taxes, if/when they go to sell it. 3) Trust: Another way to avoid probate is to transfer the real property into a revocable trust, which has the benefit of allowing you greater control over how the real property is managed and under what conditions it can be sold. The real property is owned by your trust until your death with full rights of transfer and/or sale by the trustee, but avoids probate and receives a stepped-up basis upon your death. Adding a child to your deed during your lifetime can have significant, negative tax consequences. It is imperative that you consult with competent legal counsel before re-titling your real property. There are numerous factors that go into determining which estate planning vehicle is most appropriate for you and your family.