Nobody wants to think about the day when they are no longer around. However, it is incredibly important to have a plan in place for when that occurs. You may think that because states such as Illinois will automatically grant ownership of your assets to your immediate family, you have nothing to fear about the process. However, this is often not the case. There are plenty of examples where spouses and children fight over the ownership of a home or what should be done with it. The following includes a few things to keep in mind when leaving your home to your loved ones.
The first step in creating an estate plan is to have open communication with your family. Express your intentions regarding your home as clearly as possible. Afterward, you are going to want to ask your family about their thoughts on the matter. This will help eliminate issues from arising after you’re gone or incapacitated. It is recommended to have an attorney present during this discussion to educate your family on any legal hurdles regarding their concerns.
Think about estate taxes
Unfortunately, when a homeowner passes away, the home doesn’t automatically transfer to loved ones free of charge. Many states will charge an estate tax if the home goes over the state’s limit. Even if the home’s value is slightly over the limit, your family members may be presented with a large estate tax bill. This means that they might be forced to sell the home to cover the tax bill.
Writing a will
A will is often confused with an estate plan, but they are very much connected. A will can be found within an estate plan and may be used to determine legally who is going to take control of your home as well as any other assets you have.
Creating an estate plan can be a daunting task to take on. In order to properly craft one that aligns with your state’s laws, it may be beneficial to have an attorney by your side throughout the process.