Deeds As An Estate Planning Tool

Your Estate Plan Toolkit may include Deeds

Most of us do not enjoy planning for becoming incompetent or dying.  Even so, that type of planning is extremely important.

If you own property or owe debts, it is a good idea to have a plan to deal with potential incompetency or death.  An estate plan may include powers of attorney, a Last Will and Testament and real estate Deeds.  A power of attorney provides guidance in the event you are living, but need assistance with health care or financial issues.  A Last Will and Testament provides guidance to your Executor who distributes your property as you have directed.

Your estate plan may provide for deeding real estate.  If your estate is large enough to be subject to Federal income tax, transferring real estate before you die can reduce the estate tax burden.  If you need to use the property during your lifetime, you can deed the property to someone while still retaining a life estate.  As life tenant, you would continue to have exclusive possession and use of the property until you die and would be responsible for upkeep, insurance and taxes.  If you deed property to someone while retaining a life estate, at your death the property automatically transfers to that person and does not go through your estate.

Parents may use deeds to transfer partial interests in family land to their children so that they establish ownership prior to the parents’ death.  Parents can also use life estate deeds where both parents have a life estate. The property passes to the children automatically upon the death of the second parent.

Parents may use deeds to transfer partial interests in family land to their children so that they establish ownership prior to the parents’ death. Parents can also use life estate deeds where both parents have a life estate. The property passes to the children automatically upon the death of the second parent.

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Take the next step.  Explore your options.  Get your questions answered.  Make a plan.

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