Every adult putting together an Arizona estate plan has different priorities. For some people, preparing for incapacity as they age is a top priority. For others, ensuring that a guardian is available to take care of their children might be the most important consideration.
Addressing family needs and also valuable assets are often at the top of someone’s list of estate planning priorities. For those who have become homeowners, their primary residence might be their most valuable resource. Frequently, people do not want to bequeath their homes directly to another person as part of their estate.
They may have multiple beneficiaries or may recognize that none of their family members want to live in their home. Other times, people may worry about collection efforts as they age or after they die. There are many different potential solutions for addressing real property in an estate plan. The three options below can be effective in different circumstances.
Hold title via a trust
Individuals who have long-term plans for their homes or who do not want real estate to transfer as part of probate proceedings might choose to use a trust to hold their primary residence. Doing so protects the property from creditor actions while someone is alive and probate recovery efforts after they pass. Trusts can be useful for those in blended families or who worry about qualifying for Medicaid benefits as they age.
Add a beneficiary to the title now
In scenarios where people remarry later in life or have their children serve as live-in caregivers, they may want the person living with them as they age to inherit the home after they die. Executing a deed to change how someone holds title can keep their interest in the home out of probate court after they die. A deed that changes the vesting to joint tenants with rights of survivorship allows the surviving resident to assume the deceased party’s interest in the property without it first passing through probate court.
Leave instructions to sell the house
In scenarios where people have multiple beneficiaries and do not want one person to inherit more than others, selling the home as part of the probate process can be a viable option. The personal representative of an estate can list the home for sale and then distribute the proceeds from the transaction among multiple beneficiaries.
There are other options available, including executing a deed as part of a broader estate plan. Family circumstances and other considerations can influence the best solution for a home in an Arizona estate plan. Ensuring the smooth transfer or liquidation of high-value assets is often an integral component of effective estate planning.
