Texas parents can create a strong future for their adult children and grandchildren through a strong and carefully crafted estate plan. Through certain estate planning measures, parents can leave their kids specific assets that will provide them stability and security long-term. Parents who want to pass a home to a family member after passing should give careful thought to the most appropriate and beneficial way to do so.
Passing property to heirs
It is possible to pass a property to heirs by gifting during one’s lifetime, bequeathing it to a specific person in a will or selling the property to specific family members. There are potential high-cost tax consequences associated with each option, and it is prudent to carefully think through each of these before proceeding. One way to do this is to place the property in a revocable trust, a step that will allow for the avoidance of the probate process.
Selling a home can lead to capital gains taxes depending on the amount the property was sold for and its original purchase price. Major legal and financial transactions can also lead to disputes among family members. If this is the preferred option for passing real estate, it is prudent to carefully outline how the process should work in an estate plan.
Creation of a strong estate plan
Texas parents wishing to pass a house to his or her children would be wise to think carefully about the best way to accomplish this goal. Creation of a strong estate plan allows one to control what will happen to important property in the future. With the right plans in place, one can look to the future with confidence.
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