One of the most difficult aspects of planning for the future is considering what will happen to your personal property after you pass away. It is not easy to consider your own mortality, but it is a necessary and important process to plan for your passing. Estate planning is a critical step for Louisiana adults of all ages and income levels, regardless of age or health status. If you have a family home that you would like to pass to your loved ones someday, it is important that you do so properly.
Passing property to heirs and beneficiaries is a normal goal for estate planning. However, there are specific ways that you should do this; otherwise, you could create unintended complications for you and your loved ones. With the right plans in place, you can feel confident that your future interests are secure. It is important to think carefully before you make any important decisions regarding your property and your heirs.
Deciding what happens to your home
Your home is your personal property, and you have the right to have the final say over what happens to it. If you would like to ensure that your home passes to your loved ones, you have a few options by which you can accomplish that goal. Those options include:
- Give the home as a gift – With this option, there are some tax penalties for the giver. If the home increases in value, your beneficiary will owe capital gains taxes if he or she sells the home.
- Put the home in a revocable trust – By placing your home in a trust, you will retain the ability to use your home as you wish during your lifetime. Assets placed in a trust do not have to go through the probate process, which many see as a benefit.
The decisions you make regarding your personal property and assets are unique and specific to your individual situation and your goals for the future. An assessment of your estate, your finances and your objectives regarding your family home will help you understand the specific steps you can take to create a plan that is meaningful for generations to come. Your estate planning efforts now can provide you with peace of mind, as well as financial security for your children and grandchildren.