Parents creating estate plans often want to leave as much as they can for their children. That is as true for those with adult children as it is for parents concerned about protecting minors in the event of a tragedy.
For many Virginia parents, the home where they live is their most valuable possession. It represents security and is also a location where they share many meaningful memories with their children. It is only natural that many Virginia parents want their children to inherit the homes where they live after their passing.
While many people use wills to name their children as beneficiaries who inherit their real estate holdings, there are two other estate planning solutions that may actually work better for the family.
Transferring the property to a trust
Holding real estate in a trust offers numerous benefits. Owners can retain control over the property as the initial trustee if they establish a revocable living trust. They can structure the trust to allow them to stay in the home and to protect their spouse’s right to live there when one spouse dies before the other.
However, trusts allow for more nuanced control of assets. When both spouses eventually pass, the home can then transfer to the children who are beneficiaries of the trust. Trusts help protect assets from creditor claims and reduce the risk of estate taxes in cases where people have multi-million dollar estates.
Executing a deed
The official means of transferring real property ownership typically involves the execution of a deed. Sellers and buyers must sign deeds during real estate transactions. Deeds can also facilitate transfers within a family.
A transfer-on-death deed is a document drafted by a property owner while they are alive and retain their testamentary capacity. They name specific beneficiaries to inherit the property after their passing. Once they die, their family members can assume ownership without the home passing through probate court. Much like a trust, a transfer-on-death trust helps limit the risk of estate taxes or creditor claims against the home.
Reviewing testamentary wishes and valuable personal holdings with an estate planning attorney can help people use the tools that are most effective for their personal estate planning goals. Parents can often arrange for the direct transfer of real property to their children after they die without their homes passing through probate court. Virginia residents hoping to leave their homes for their children can evaluate their options with the professional at NOVA Estate Planning, PLLC by calling 703-540-3726 or clicking here.