For most Florida residents, as well as most of the adult population throughout the country, the houses they own are their largest asset. Many already paid off their mortgage, while others still have a way to go. For those who want to pass down their home as an inheritance, the estate planning process provides several options.
It is helpful to seek guidance from a knowledgeable source, such as a Florida estate planning attorney, to determine which options best fit a specific individual’s needs. What works well for one person may not be a viable option for another. It is important to understand that many estate planning documents can be changed once they are signed but some cannot. Keep this in mind when passing down a home.
3 estate planning options for bequeathing a home
The most common ways to pass down a home as an inheritance are:
- A last will and testament
- A revocable trust
- A Qualified Personal Residence Trust (QPRT)
Passing down a home through a will is not always the best option. Assets listed in a will must pass through probate, which can be a lengthy process. Using a revocable trust enables a beneficiary to bypass the probate process. The difference between this option and a QPRT is that the estate owner retains control of the asset placed in a revocable trust. With a QPRT, control immediately passes to the beneficiary, even while the benefactor is still alive. However, the benefactor is permitted to keep living in the home.
Estate planning is not a once-and-done process
An estate planning attorney can help determine which options are best to pass down a home as an inheritance. An attorney can periodically review a plan to make sure necessary changes are made as needed, keeping all documents updated. Florida homeowners with estate questions can schedule a legal consultation at their convenience.