Thinking of Leaving Your Home To Your Heirs?

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Your Biggest Asset… Your Home!

Have you thought about leaving your home to your heirs?  Yes, the home that’s been  in your family for years? Your residence is probably your most important asset. It is where you and your family feel safe and warm, and connected to each other. In early life, it’s a place full of possibilities, full of dreams.

For those in their later years, it’s a time to decide how to go about leaving your home to your children (or desired heirs). Olivia Stoner Esq, can discuss what method of transferring property to your heirs works best with your goals and overall estate plan. She gives us a brief summary of various transfer methods:

Title your home jointly with your children with rights of survivorship.

• Advantage: Your children automatically inherit the home when you die.
• Disadvantage: You will need your children’s consent if you wish to sell the house. You will be entitled to half or less of the proceeds depending on the percentage you and your children own respectively.
• Disadvantage: For Medicaid purposes, this may be considered a gift and therefore create a period of ineligibility for benefits. Deed your home to your children, reserving a life estate for yourself.

Deed your home to your children, reserving a life estate for yourself.

• Advantage: Your children own the home when you die.
• Disadvantage: You will need your children’s consent if you want to sell the house. You will be entitled to a minor percentage of the proceeds, based on the value of your life estate.
• Disadvantage: For Medicaid purposes, this may be considered a gift and create a period of ineligibility for benefits. Place the house in an enhanced deed (also known as a ladybird deed), you retain the home for the rest of your life, and you have full rights to sell it or give it away while you’re alive.

Place the house in an enhanced deed (also known as a ladybird deed), you retain the home for the rest of your life, and you have full rights to sell it or give it away while you’re alive.

• Advantage: The children automatically inherit the home at your death.
• Disadvantage: This arrangement may not be acceptable to some lenders and title insurance companies. This could make it difficult to sell or refinance the home. Stay tuned for more details in the next issue of WPFSI’s “Street Scenes”!

Olivia H. Stoner is a Probate and Estate Planning attorney. For more information contact Olivia H. Stoner via email at ohstoner@aol.com or at 2112 Walnut Street, 2nd Floor, Philadelphia, PA 19103 (215) 557-0097.