It’s important to properly plan for the distribution of your assets in the event of death or incapacity. Real estate is often the most significant asset for many individuals and families. Proper estate planning for real estate can help ensure that your property is distributed according to your wishes and that your loved ones are protected.
Here are a few tips on how to effectively incorporate real estate into your estate plan:
- Create a comprehensive estate plan that takes into account all of your assets, including real estate.
- Consider creating a living trust, as this can help avoid probate and ensure that your real estate and other property is distributed according to your wishes.
- Confirm that your estate plan clearly states who you want to inherit your real estate assets.
- Review and update your estate plan regularly.
- Work with an estate planning attorney to ensure that your plan is properly tailored to your unique needs and goals.
- Make sure that your real estate is properly titled so that it becomes part of the trust or other entity that you established for estate planning purposes.
- Consider the tax implications of your estate plan and how it may affect your real estate assets.
- Consider using gifting strategies, such as the annual gift tax exclusion, to transfer real estate to your heirs during your lifetime, rather than waiting until after your death.
- If you own rental property, consider transferring ownership to a limited liability company (LLC) for added protection from liability.
- If you have a vacation property that you don’t plan to leave to your heirs, consider selling it to generate income for retirement.
If you have questions or concerns about how to include your real estate in your estate plan, contact us to schedule a consultation with an experienced estate planning lawyer.