Estate planning gets more complicated as assets increase in value. It can be harder to decide what you should do with certain property or how to handle things fairly. There are also tax implications if the total value of your estate reaches eight-figures.
If you were like many Americans, the home where you live is the biggest asset you own. It is natural to want to leave it to someone you love for their enjoyment or enrichment. You may also want to keep it out of probate court to avoid delays in occupancy for the beneficiary receiving the house or to protect your legacy.
Is including a beneficiary deed in your estate plan a good solution for transferring your real estate?
Risks come with using a beneficiary deed when estate planning
Beneficiary deeds are simple instruments that can help you convey title and transfer ownership easily. Unfortunately, there are many limitations on beneficiary deeds, especially if you want to use one to transfer property at the time of your death.
There are other ways to transfer ownership of your house that limit your tax risks and delays caused by probate proceedings. Thinking about what use your family members will have for the home and who you want to inherit the house can help you create an effective estate plan.