We’ve all pondered the idea of what will become of our home when the time comes. On today’s podcast, we’ll examine how to leave your home as an inheritance.
(Click the featured times below to jump forward in the episode)
Puzzle Of The Week:
- [9:06] – What do I do with my house when I die? Who do I leave it to?
[9:42] – Some Things Not To Do.
- Let’s say there’s a widow or widower and they decide to list their survivor as a co-owner on the home. Well we’d ask “Why?” There’s more than one way to skin a cat, and you don’t have to list your survivor as a co-owner to leave your home to them. In fact, this is probably the worst way to do it. Making your surviving child, in-laws, friends, random strangers, etc a co-owner essentially makes them your business partner. If you decide you don’t want your home anymore and wish to sell it instead, you now have to first consult your co-owner, and guess what, they also get half of your proceeds. If your co-owner has a spouse, you might have to get their permission as well. Oh and by the way, if your co-owner gets sued, guess whose assets might fall square in the crosshairs? Making someone a co-owner binds them to you and cements your decision as final.
[11:45] – There Are Many Ways To Leave Your House.
- There are other, more efficient ways to pass along your house upon your death. As an example, you can create a living trust. In this scenario, you own the trust, the trust owns the home, and when you die, the trust leaves your home to whomever you’ve chosen automatically. You can also initiate a Transfer On Death (TOD). A TOD automatically transfers ownership of your home upon your death, but until you kick the bucket, you maintain full control.
[12:58] – Is A House Even A Good Asset To Leave Someone?
- Have you considered whether leaving your house is a good idea? Let’s say you leave your house to your four kids. Under these circumstances, they’d each get a 25 percent share. Now let’s assume they all have different opinions on what to do with the house. Suddenly, the sibling bickering becomes a lot worse than their debates over Burger King versus McDonald’s for Sunday lunch. Maybe one child wants to sell the home, one child wants to keep the home, and another still wants to rent it out for secondary income. The differing opinions brought on by four owners and their spouses can get quickly create a tricky situation. It’s important to think through whether leaving your home is a good idea, and if it is, how to do it.
- [3:09] – Dan’s Minimalist Experiment.
- [8:04] – Talk To Dan.
- [14:54] – How To Leave Your Home. Call A Family Meeting.
- [17:00] – A Home Inheritance Is Great For Tax-Purposes.
The Full Picture:
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The host: Dan Cuprill – Schedule A Time To Meet – Or Call: (513) 563 – 7526
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