How To Leave A Home To Your Heirs

  • Estate Planning
3 ways to leave a home to your heirs | estate and probate legal group

Planning the disbursement of your assets after your death is not a dark subject. Actually, having an estate plan to care for yourself while still living and after you pass is very responsible. Part of your estate planning includes leaving your assets to your loved ones. And one of your biggest assets might be your home. You must decide the best way to leave a home to your heirs.

3 Ways To Leave A Home To Your Heirs

It is generous of you to want to leave the family home to your loved ones. Now you need to decide what is the best way to do so. There are many options to consider for both you and your heirs. According to Charles Schwab, here are 3 ideas to consider:

  1. Sell it to them now
    This scenario may work if you are planning to move into a smaller house or assisted living and your heir needs a place to live. Selling the home to them now may help you both. Plus, it removes the property from your taxable estate.
  2. Gift it to them now
    If you don’t want to burden your heir with a mortgage payment, you may consider gifting them the house. But be careful of this; there are usually considerable tax implications for you both.
  3. Wait until you pass away
    You can pass your home to your loved one by:

    1. last will and testament
    2. transfer on death deed
    3. through a trust

There is an option that we advise against. DO NOT add your heir to your home’s title. While the thought sounds good, the consequences of adding your loved one’s name to the title of your home are huge and not advisable.

Deciding What Is Best For You

We cannot stress enough the importance of discussing this with your loved ones before you make any decisions. You may assume they want the house, but have you actually asked them? While your heir may love the family home and have fond memories, they may not want to live there after you’re gone. And maybe the mortgage payments, taxes, insurance and maintenance are more than they can handle. You never want to burden your loved ones with what you consider a gift.

It’s important to talk with an estate planning attorney when determining the best method to leave a home to your heirs. There are advantages and disadvantages to each scenario. And understanding the pros and cons will help you make the best decision.

Talk With An Oak Brook Estate Planning Attorney About How to Leave A Home To Your Heirs

If you are considering leaving a home to your heirs, talk with us first. We will help you consider all ramifications and choose the best option. Let the Estate & Probate Legal Group in Illinois guide you each step of the way. Contact us today at 630-864-5835.

AREAS WE SERVE: DuPage, Kane, Lake and Will counties.