Estate Planning and Your Real Estate: Securing Your Home's Future

Estate planning involves creating legal documents that outline how your assets will be handled upon your death. These documents typically include a will, trusts, powers of attorney, and healthcare directives. 

The Importance of a Will

A will is a foundational document in estate planning. It specifies who will inherit your assets, including real estate. If you own a family home and want to ensure it stays within the family, a will can designate specific heirs to inherit the property.

Utilizing Trusts for Real Estate

A living trust allows you to transfer ownership of your property into the trust while retaining control during your lifetime. Upon your death, the property can be transferred to your beneficiaries without going through probate. This can save time, reduce legal fees, and keep your estate matters private.

Revocable Living Trust

A revocable living trust can be altered or revoked during your lifetime. For instance, if you own multiple rental properties, placing them in a revocable living trust ensures that these properties are managed and transferred according to your instructions. This can be especially useful if you want to designate different properties to different heirs or charities.

Protecting Real Estate from Taxes

Estate taxes can significantly impact the value of your real estate. Proper estate planning can help minimize these taxes. For example, the federal estate tax exemption allows you to pass a certain amount of your estate tax-free. As of 2024, this exemption is $12.92 million per individual. By setting up a trust or gifting property during your lifetime, you can reduce the taxable value of your estate.

Gifting Real Estate

Gifting real estate to your heirs during your lifetime can reduce the size of your taxable estate. Suppose you own a vacation home valued at $500,000. By gifting this property to your children now, you lower the value of your estate, potentially saving on estate taxes. 

Estate planning can be complex, especially when real estate is involved. Consulting with an experienced estate planning attorney can help you navigate the legal intricacies and tailor a plan that suits your specific needs. They can assist in drafting documents, understanding tax implications, and ensuring your estate plan aligns with your goals.

For more information, contact our office at Askew & Associates, P.A. by calling 954-546-2699.

Disclaimer: this blog post is not intended to be legal advice. We highly recommend speaking to an attorney if you have any legal concerns.