Whether you have just your home to consider, a cabin or multiple parcels of unimproved land that you purchased as speculative investments, real estate holdings may be among the most valuable assets that you possess.
Your real estate holdings may represent a significant portion of your personal wealth. The people that you love will likely have an interest in your real estate holdings when you die because of the financial value and possibly the emotional value associated with those properties. How can you address your real estate in your estate plan?
Change ownership to avoid probate
If you want your spouse or a child who lives with you as a caretaker to inherit the home when you die, you don’t need to wait for probate proceedings to make that change, you can update the title to hold your home with the person who will inherit it as joint tenants with rights of survivorship.
When you die, your interest in the property will pass directly to the other person and not through probate court.
Leave directions to bequeath the property to specific people
Perhaps you would like to leave each of your vacant parcels to different grandchildren. Maybe you would like all three of your children to share ownership of the cabin where you spent your summers when they were young. The most straightforward way to pass on real estate is to name a specific beneficiary for it in your estate plan.
Give your loved ones the value of the property
Maybe your loved ones have moved out of state or already own their own home. If they don’t have an interest in possessing your real estate, you can leave instructions for your executor or trustees to sell your real estate and distribute the money that they receive in a specific manner among your beneficiaries.
Addressing your most valuable assets in your estate plan will help you leave behind a lasting legacy.