The purchase of a home or other property is typically one of the most important milestones in a person’s life. As a homeowner or property owner, you do not want to leave such valuable possessions in the hands of the government if you pass away or become incapacitated. Protecting your house with an estate plan ensures that your assets are safeguarded and distributed to your spouse, kids, and family, after you die, according to your wishes. Not protecting your house with an estate plan means that your assets will have to go through probate court before they can be distributed, placing additional financial and emotional burdens on your grieving loved ones.
Your wishes
The first thing to do before starting an estate plan is carefully consider your wishes. To determine how you want your property handled after your death or incapacitation, here are some of the questions you should ask yourself:
- Whom do I trust to make decisions on my behalf in the event I become sick and can no longer care for myself?
- How do I want my property and other assets to be distributed after my death?
- Do I own my assets outright or is ownership held by a trust, bank, or brokerage account?
Although it can be difficult or unpleasant to think about a time away from those you care about most, these are crucial questions that you should answer. Doing so will help you prepare in advance to contact an estate planning attorney for a consultation and protect your house with an estate plan that will leave your home or property to the individuals or organization of your choice.
San Diego Estate Planning
San Diego Estate Planning
Dive into the world of estate planning with this quick and straightforward video…
Your legacy
Circumstances in life vary widely from person to person, so of course every estate plan will be tailored differently. An estate planning lawyer can analyze your unique situation and help you sort out which legal documents are needed to protect your legacy.
Your estate plan should include your will and other legal documents that outline your wishes in detail. If you own various assets, such as property, investments, or retirement accounts, your estate planning process may involve a more complex strategy. Your attorney can assist with these documents and see to it that your estate plan is crafted in accordance with state laws.
A key aspect of drafting your will is choosing beneficiaries to receive your assets, including your home, when you die. You can also choose how you want to allocate your personal items and effects.
A trust describes exactly how and when your assets will be distributed, as well. However, it contains additional benefits for minimizing taxes, avoiding probate, and naming who will care for your minor children after your death.
People often combine the use of a trust with a will. The primary difference between the two is that a trust avoids the probate process of transferring property from you to your beneficiaries. In the absence of a will or trust, your state law will decide how your assets are divided upon your death. This could leave your loved ones with the need to go to court and claim your assets (this process could take several years).
Placing your home in a trust establishes protection of it in the future. By putting your house in a trust, you will save your children or spouse from the hefty fee of probate costs, which can be significant (up to five percent of the asset’s value). In most cases, all high-value assets you own, like real estate, should be added to a trust.
If you want to learn more about protecting a house with an estate plan, or if you need guidance with your estate planning, then our team at Hatley Law Group in San Diego is here to help.
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