A new “estate of the industry report” identifies that the most common asset owned by people planning to pass on things to their beneficiaries was real estate. In fact, real estate made up more than 72% of total estate plan assets. This was the third consecutive year that real estate took the number one spot. The growth in both value and volume for real estate makes it extremely important to work with talented professionals like estate planning lawyers and real estate professionals to complete your full plan.
One of the biggest challenges with passing on real estate is the attempt to make things fair by assigning real estate as a transferred asset to multiple people. A single property owned by multiple individuals can create tensions between new owners who may not agree when it’s time to sell the property or how to utilize the property fairly. By doing simple planning in advance with the help of an estate planning lawyer as well as communicating your intentions clearly ahead of time can be the make it or break it situation when it comes to effectively passing on real estate to the next generation. Talk about this while the current owners of the real estate are still alive and come up with a plan for how you want to handle it.
You may also be surprised with how intended beneficiaries think about using that asset and whether or not they want the maintenance responsibility or to work with others in the family on managing it.
This can help you come up with a clear plan that addresses everyone’s unique needs and concerns and leaves you confident about the strategies you’ve developed to pass it on. Make sure you work with an estate planning lawyer in Pasadena to discuss the vehicle through which you will effectively pass on this piece of real estate.