Most people have wonderful memories in their home and consider it a focal point of their family life. For this reason you might be planning on passing down your Brighton home to your children as they get older. While this can be a fantastic idea for your family there are a few things you might need to consider. There are financial and legal implications to consider as well as the practical and emotional aspects for your children. It is best to start thinking about these things as soon as possible to avoid any stressful situations later. You never know what might happen with health or finances, especially as we get older, so try to plan for the future as best you can!
Timing: Now or Later?
One of the very first decisions you will need to make about passing down your Brighton home to your children is: Are you doing this now or after you have passed? Whatever you decide will have a significant impact on the legal and financial side of things so make sure you think about this carefully. Both options have their merits but ultimately you should choose what makes most sense for you and your family.
Do you already know you will want to downsize and move into a smaller home or even assisted living? Then passing down or selling the home now is better. But if you are adamant that you will stay in your Brighton home until you pass then waiting until that happens makes more sense. Make sure to talk to your spouse about this! You need to be in agreement on these things or else you might have conflict later.
Have You Talked To Your Children?
This may seem obvious but it does happen! Parents who love the idea of passing on their family home to their kids have come to find out their children have no interest in the Brighton home! It’s important to have open, honest and candid discussions with your children about whether they want to have the home.
Sometimes our emotions can cloud our judgment. Try to look at the situation objectively and see if it makes sense to pass down the home to your children. Are they settled here in Brighton? Or do they have dreams of moving or traveling? Do they have a family that fits the size of your home? Does your home need updates and repairs and can they afford them? These are all important questions you need to ask yourself and discuss with your children.
Then, when your children agree that they want to keep the home in the family the next thing to consider is how to divide the home. If you only have one child this is quite simple. However, things can get complicated (and sometimes ugly) when multiple children are involved. Will they all own equal shares of the home? Will the home only go to one child? What happens if they decide one of them wants to sell later on but the others don’t?
Consider the Legal and Financial Implications
If you are planning on passing down your Brighton home to your children I seriously recommend talking to your CPA or a real estate attorney to make sure you are making all of the best decisions and choices. Federal and state tax laws as well as estate laws and gifting laws are always subject to change so it’s a good idea to talk to someone who knows all the details. They can also help you prepare for if these laws change after you have made your plans.
Generally you want to set things up for your children so that they can avoid any costly or time consuming issues later. One option that might be good for you is putting your Brighton home into a trust along with the funds to operate the home for ten years. Putting the property into a trust and transferring ownership to your children could help you avoid estate taxes.
Talk to your CPA or real estate attorney about what is best for you. You might eventually choose not to pass down the home at all but to sell it and then put the money from the sale into your estate, a trust, a gift or your grandchildren’s college fund. It’s up to you to decide!
How Can I Help You With Passing Down Your Brighton Home to Your Children?
I hope this article has shown you that I am a knowledgeable and very honest real estate agent who wants to help buyers and sellers. I want to provide my clients with interesting and up-to-date information so they can make informed decisions.
See what I could do for you when you are ready to sell your home. If you think that my expertise and positive attitude might be of service to you don’t hesitate to reach out and contact me!