How To Invest and Save Money
|Britt Erica Tunick is an award winning financial journalist who has spent the past 17 years writing about virtually every aspect of finance. She has mastered the art of boiling down complicated financial topics for readers to understand.|
Whether by sale, through a trust, or by gift, consider the many options to transfer real estate to your heirs, but be sure to take into account the tax ramifications of each option.
Things to Consider When Passing Real Estate on to Heirs
By Britt Erica Tunick
For many people, real estate is their most valuable possession, both monetarily and sentimentally. Whether it is a primary residence where couples raise families and eventually entertain grandchildren, or a vacation home where friends and family members routinely gather, real estate is typically a major part of the assets that most people ultimately pass along to their heirs. So, it is important to determine what will become of any real estate holdings you own long before they change hands, as failing to do so can not only cause significant rifts between family members, but it can also prove costly to your heirs.
When it comes to passing along real estate, there are several things to think about—from whether you want to wait to pass it along once you have died or while you are still living, to how it will ultimately be transferred. Following are a few of the ways to do so and some of the biggest things you should know about each:
Whatever you decide to do with any real estate you own, make sure to discuss your plans with your heirs before implementing anything to make sure you are all on the same page. These days, many younger generations prefer city living to owning large homes in the suburbs. Knowing what your heirs ultimately want should be the first step in planning what to do with real estate holdings.