Today’s financial topic has nothing to do with the Stock Market. This has to do with real estate…namely yours. So you are a good parent, love your kids, and figure as you’re reaching or passed retirement age, you will do them a favor and have them either become co-owners of your home or put it in your will that they receive it after your death. Do Not Do This. I mean if you don’t like your kids and you wanna hit them with all sorts of potential capital gains tax and the hassle of having to go through probate…then sure, go for it.
The way to go here is to contact an attorney/estate planning professional and have the house put into a Living Trust. This is a safer and more flexible strategy. Parents can transfer the house into a trust, retaining full control during their lifetime while ensuring the property passes to their designated heirs without going through probate.
A living trust allows you to avoid probate, maintain privacy, and manage assets if you become incapacitated, while a will does not; however, a will is the only way to name a guardian for minor children and is generally less complex and less expensive to create than a trust. You can also use both a will and a living trust together to create a comprehensive estate plan. My feelings are exactly that…do both.
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