Protecting a home is a priority for many Ohio residents when setting up an estate plan. A home is typically the largest asset in an estate.
As you get older, you may realize you need to decide what will happen to your home after you pass away. Most people want their home to go to their spouse or children.
There are several options to consider. Before you decide on an option, consider what your heirs are likely to do with the home. Would they live in it or sell it? Are they able to afford the upkeep if they choose to live in it?
A will or revocable trust
You can use a will to pass down home on to your heirs, but the home will need to go through the probate process, which means more time and costs involved in passing on the home.
A revocable trust is another option to consider. This is a trust that allows you to retain control over the home during your lifetime and determine how the home is transferred after you pass away. The home is transferred according to the trust rules and avoids probate.
Co-owning the home
Another simple option sometimes overlooked is adding your heirs to your home as co-owners while you are still living. That way, they automatically take ownership of the home when you pass away.
Remember that although a home is an asset, your heirs will also inherit any financial obligations that come with the home, such as mortgage or tax payments. Additionally, there are potential tax consequences to some of these options that you should consider.
Discuss the issue with your family
Whatever option you choose, discuss it with your family to ensure everyone understands and avoid family conflict.
Deciding what happens to a home is often the most complex part of estate planning. A home is not just a substantial financial asset. It is a place that holds memories and emotions. Therefore, making the right decision about what to do with your home is important.