Passing On the Family Home to the Next Generation

There are nearly half a dozen ways to give a home to your child. And a couple are tax-free.

You’re probably well aware that for many families, the family home is the single most important estate asset. Can you imagine your kids having to part with the home they grew up in? The thought evokes many emotions when making end-of-life plans, and passing along the family home to the next generation is certainly an option. Family homes may also be the most valuable estate assets, and estate taxes may complicate plans for passing them along. If this is your goal, however, don't give up. There are tax-savvy strategies to make it happen, but they require you to plan ahead.

For a good overview of this topic, turn to a recent article in SmartMoney, “Passing Your Home to Heirs.” The article is pretty easy reading on a fairly complex subject, and includes a run-down on some effective strategies: from the simple bequest in your will, to variously structured sales, to more sophisticated trust-based strategies.

Which planning strategy will work best for you depends upon your unique circumstances. This definitely is not a do-it-yourself undertaking. There are many factors to be considered and legal land mines to avoid.

If passing a family home to your heirs is one of your goals, be sure to discuss this with your estate planning attorney, who can guide you to implement a strategy that will work for you.

To talk to an attorney about your estate planning needs, visit www.elderlawannarbor.com.

Reference: SmartMoney (February 5, 2013) “Passing Your Home to Heirs”