What follows are issues to consider, and, in those rare cases where a transfer can make sense, how to do it the right way.
Are you thinking about handing over the family home to your loved ones early? Proceed with caution. Although the hand-off can be a blessing to some, there are consequences you should consider before passing on the house keys.
This challenge was the subject of recent article in The Wall Street Journal titled the “Dangers of Giving Your Home to Your Children.”
Perhaps the more important detail of this story is that the home was sold in an estate sale by heirs who appear to have let the property go for considerably less than market value.
Inherited property brings with it certain important responsibilities, and that goes double and triple for executors or trustees. The gifted property can be an immense gift and boon to your future. Even if it’s not going to be a home to live in and is just an asset to sell, what a windfall it can be!
There are all sorts of liabilities, insurances, and special transactions that might become important when a piece of real property is at stake. However, foremost at issue for heirs is selling it at the right value. Indeed, responsibility for understanding the real estate market or knowing whom to trust when selling real estate is something an heir takes on.
Houston Estate Planning and Elder Law Attorney Blog