Estate planning is an imperative step when it comes to owning real estate. Regardless of the area in which you live, you should have a plan in place for what happens to your home after your passing. When you pass on without a plan for your estate, many complications can arise regarding your property.
Avoiding Probate Proceedings
In the state of California, if real property is worth more than $150,000 fair market value, the property will be subject to probate. Probate is a highly expensive, lengthy, and public process. Uncontested Probate proceedings can take anywhere from one to two years, and are associated with expenses such as court costs, attorneys’ fees, and executors’ fees, all of which are paid out of the estate. By establishing a trust, your estate will avoid the time and financial cost associated with probate proceedings.
If your family members do not have the financial resources to cover the cost of Probate, they may be forced to sell any real estate included in the estate in order to cover the fees. You can prevent this by having an estate plan in place. An expert in estate law will be able to anticipate the potential costs associated with Probate and help you craft a plan for your estate that ensures that your loved ones will have the financial resources necessary to abide by your wishes for your property.
Preventing Family Conflict
Real estate can be a deeply emotional item for families to deal with after the owner has deceased. For example, if the real estate in question is a childhood home, family members may feel conflicted about what to do with the property. You can preempt such conflicts by having an estate plan that provides detailed instructions regarding what should happen to your real estate after your passing. This will serve to prevent potential issues between family members, which will help to alleviate some of the stress associated with such an emotional time. It will also ensure that your real estate is dealt with in accordance with the way you would like.
Ensuring That Your Property Passes to the Party of Your Choice
If you do not have an estate plan, the legal system will determine who inherits your home and other property after your passing. In the state of California, an estate will be reviewed by probate court if a property owner passes away without a valid will. This can create an exceptionally complicated situation. Without a named heir, the estate becomes intestate, and the state’s intestate succession laws will determine who is the rightful heir of the property.
Every person should have an estate plan. This is especially important for individuals who own real estate. Without an estate plan in place, your loved ones will have to deal with a complicated situation upon your passing. By taking the time to work with an expert to create an estate plan, you will ensure that your real estate and other affairs will be properly dealt with upon your passing – giving you peace of mind today, and your loved ones peace of mind in the future.