Maybe a residential property in Seattle has been in the family for generations. The current owner may want to continue the tradition of passing it down to their children or grandchildren. Perhaps the home is a recent acquisition on the highly competitive local real estate market. People may feel strongly about keeping the property in their family as a means of growing familial wealth.
Proper estate planning is critical for those who own real property. Without appropriate planning, the home could be at risk of liquidation by beneficiaries who do not value the property. It could also be vulnerable to creditor claims. If aging adults rely on Medicaid for nursing home costs in their golden years, their homes could be vulnerable to Medicaid estate recovery efforts after they die.
How can Seattle-area homeowners plan to keep their homes in the family?
With trusts
Transferring the title of the home to a trust is a common estate planning strategy. A trust can control the property for generations. It can allow people to live in the home without giving them the legal authority to sell the home or use it as collateral for a loan.
Trusts can be beneficial in scenarios where homeowners want to let their spouses live in the home until they die and then have the property passed to their children. Trusts can protect homes from creditor claims and Medicaid estate recovery efforts. They can also diminish the likelihood of estate taxes.
With deeds
In some cases, the estate planning process for a home involves executing a deed. The current owner can take on co-owners who inherit their interest in the property after their passing. Those who do not want to take on co-owners while they are alive could execute transfer-on-death deeds to keep their homes out of probate court and allow them to pass smoothly to specific beneficiaries.
With wills
Wills can be effective estate planning instruments, especially when people do not expect conflict about their wishes or financial challenges during estate administration. A will allows the homeowner to choose a beneficiary or even multiple beneficiaries to inherit their interest in the home. Wills can be useful for those who want to leave a property directly to their spouse or to their children.
The right solution depends in part on a person’s circumstances. The value of their home, the nature of their relationships and their intentions for the property can all factor into the estate planning process. Sitting down with an estate planning attorney can help people make arrangements that allow them to keep their most valuable assets in their families.