{"id":791,"date":"2019-12-01T05:00:48","date_gmt":"2019-12-01T10:00:48","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=791"},"modified":"2024-04-25T23:20:32","modified_gmt":"2024-04-26T03:20:32","slug":"homeowner-estate-planning-real-estate-tips","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/homeowner-estate-planning-real-estate-tips\/","title":{"rendered":"Homeowner Estate Planning: Real Estate Tips"},"content":{"rendered":"\n
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Ready to\nmove estate planning to the front burner? Homeowners, especially, need to have\na plan in place. If there is no will, and no other arrangements for the\nhome to pass\nto a co-owner<\/a>, it will pass according to the state intestacy\nprovisions. That’s not an estate plan. There’s no better time than the present\nto choose a beneficiary, and make an estate plan.  <\/p>\n\n\n\n

Here is the\nbasic set of options, and how they might play out\u2014financially, legally, and in\nemotional terms. We include a few tips to note in the process. Any\nor all could be a great conversation starter with your lawyer or financial\nadviser. Schedule a talk with family or other beneficiaries, too.<\/p>\n\n\n\n\n\n\n\n

The\nHome as a Bequest<\/h2>\n\n\n\n

What do you\nenvision happening with your house? Are your children\u2014or\nother potential beneficiaries\u2014aligned with your vision? Be sure the next\none in line for your home wants it. Otherwise, that person might be\nunready for the legal fees and taxes, not to mention the expenses\nthat come with home maintenance.<\/p>\n\n\n\n

One big\nbenefit of leaving your home in a will? The beneficiary gets a stepped-up cost basis.\nSo, if they sell the house, only the rise in worth since you pass away\u2014not way\nback when you bought it\u2014gets taxed. <\/p>\n\n\n\n

Are there any liens on your house, such as a mortgage? Fortunately, beneficiaries needn’t prove \u201cability to repay\u201d\u00a0if they wish to take over the mortgage<\/a>.\u00a0<\/p>\n\n\n\n

If you don’t\nknow anyone who will want the home, you might be thinking of selling. Capital\ngains tax might not be a big issue. The IRS allows an exclusion of up to\n$250,000 (double that for certain owners filing a joint return) in capital\ngains from the sale of most primary residences. <\/p>\n\n\n\n

Pro\ntip: <\/strong>Note\nthat states, not just the IRS, apply estate taxes at certain levels of\nwealth. State exemptions can be much lower, so check to see if your\nbeneficiary could face a hefty estate tax bill, and be forced to\nsell or scramble for financing options.<\/p>\n\n\n\n

The\nHome as a Gift<\/h2>\n\n\n\n

To keep the\ntransfer of a home private, simple, and free from probate, you can pass\nyour interest in the home on as a gift. If you do, keep these facts in mind:<\/p>\n\n\n\n