The family home outlives many homeowners. For people with children, the home is often sold, with the proceeds distributed among siblings, or an arrangement is made for a family member to live in the home. However, for people who own homes and don’t have children, the planning is different, says a recent article from yahoo! life, “Who Inherits My Home If I Don’t Have Children?”
At its essence, your home will go to whomever you choose, but you must have an estate plan to be sure your wishes are carried out. Otherwise, state law will decide, and this might not be what you wanted.
If you die without a will, called “intestate,” the state decides who will inherit your home. Every state has its own intestacy laws used when someone who owns property dies without a will. The laws typically follow “lineal heirs” or bloodlines. A surviving spouse inherits first, followed by surviving children, parents, siblings, then nieces and nephews. If there’s no spouse, children, parents, siblings, nieces or nephews, and potentially long lost cousins that that barely know (or have never met!).
A cousin from the opposite coast, whom you’ve met once in your lifetime, could end up owning your home. If there are no cousins, or cousins can’t be located, in most cases, your property will go to the state.
For child-free homeowners, there are many choices to consider. If you are in a committed relationship but have never married your partner, and you want them to inherit your home, you’ll need to consult with an estate planning attorney and create a plan to protect them. Otherwise, they have no legal claim to the home, even if they’ve lived with you for years.
There are other choices, like donating your home to a charity or to a best friend who would benefit from inheriting the home.
Creating an estate plan puts you in control. An experienced estate planning attorney will create a last will and testament to state who gets your house, identifying beneficiaries by their full legal name and relationship to you. The document will also describe the property, including its full address and legal description.
Your will must meet your state’s requirements to be valid, which means you’ll need to be of sound mind and not be incapacitated. You’ll need to sign it in front of witnesses –the number of witnesses varies by state. In some states, the will needs to be notarized. Without following the letter of the law in your state, your will could be challenged or found to be invalid.
Trusts are another option that allows you to transfer ownership of the home to a trust. This takes your home out of your probate estate, meaning it will pass directly on to beneficiaries. Talk with your estate planning attorney about whether or not a trust is the right tool for your situation. If you are leaving your home to someone who isn’t related by blood and expect pushback from your family, a trust offers easier transfer and privacy.
If your estate is especially complicated or you have concerns about your capacity in the near or distant future, having a trust offers additional protection.
You’ll also want to have two additional documents to protect yourself and your property during your lifetime: a durable Power of Attorney for finances so someone can manage your property in case of incapacity and a Transfer on Death Deed, which is available in about half of the states to avoid probate for your home.
Talk with an experienced estate planning attorney before embarking on creating an estate plan. You’ll benefit from their knowledge of the nuances in estate planning to develop a plan to prevent unnecessary headaches for your beneficiaries and keep your home from ending up in completely different hands than you intended.
Legacy One Law Firm, APLC is an estate planning and probate administration law firm in Los Angeles, California, serving families throughout the State. Schedule a quick and easy consultation with our estate planning attorney, Sedric E. Collins, Esq., or call 323-900-5450.
