According to the National Association of Estate Planners & Councils, the purpose of estate planning is to “…develop a strategy that will maintain the financial security of individuals through their lifetime and ensure the intended transfer of their property and assets at death, while taking into consideration the unique circumstances of the family and the potential costs of different methods”.
If one owns a home, vacation property or other real estate, you should be aware of the estate planning issues that apply due to real estate ownership. For the average individual or family, the value of a personal residence ranges between twenty and forty-percent of their net worth, so a sizable portion of most estates are typically in the homes equity.
As such, there is a significant relationship between an individuals real estate holdings and their estate plan. One should ensure that proper planning is conducted well in advance to avoid probate as well as the possibility of triggering estate taxes.
Real Estate and Estate Planning Strategies
Owners of real estate are excellent candidates for estate planning. Unless an estate is properly structured, heirs and beneficiaries might be left with significant estate tax obligations and may not have the liquid assets available to make the payment.
There are many different estate planning strategies for real estate including “life estate” deeds, holding title in joint tenancy with right of survivorship or tenants in common, grantors trusts, qualified personal residence trust (QPRT) and more. As every situation is different, it is highly recommended that you consult with qualified legal and tax experts to make sure that your property passes upon the death of the owner outside of probate.
The National Association of Estate Planners and Councils has a brochure entitled “Your Guide to Collaborative Estate Planning”. This guide can be accessed by clicking on the image below.
Does Real Estate Go Through Probate?
Without proper planning strategies, real estate assets often will go through probate. If a home or other real estate is held jointly, it will commonly only need to go through probate upon the death of the second owner. However, it the property is held in a trust or other type of ownership structure, it is possible that probate can be avoided.
Finding Quality Estate Planning Advice
Finding a trusted estate planning professional might be challenging. Although a few years old, Forbes.com has an excellent article entitled “How To Find A Good Estate Planner” which can be found by clicking here. In addition, Fidelity Investments provides a free guide on “How to find an estate planning attorney” which can be found by clicking this link.
Since our team specializes in the management and sale of estate, trust and probate real estate, we have worked with dozens of high quality estate planning professionals including attorneys, accountants, wealth managers, professional guardians and corporate trust companies. If you need help getting stated, please feel free to contact us and we would be happy help provide options and resources to get your started.
Click here to email our team now or contact us directly at 561.584.8555.
What are your options when inheriting real estate?
There are a number of different paths you can take with an inherited property. We find that the most frequently used options are as follows:
- Keep the Property in the Family
- Rent the Property
- Sell the Property by Yourself
- Sell the Property “As Is” to a Wholesaler
- Donate the Property to a Non-Profit or Charitable Organization
- List the Property with a Conventional Realtor
- Hire a Probate Real Estate Specialist to Handle the Entire Process
As Certified Probate Real Estate Specialists (CPRES) and members of multiple estate planning councils here in the South Florida area, we are here to help with all your inherited property / probate real estate needs.
To learn more, please visit our “Complete Guide on What To Do When You Inherit a Home or Other Real Estate”.
About Quantum Realty Advisors, Inc.
Our firm differs from “traditional” real estate companies as we specialize in working not only with individuals and families but with professional advisors including attorneys, accountants, investment managers, professional guardians, corporate trust officers and financial institutions to assist their clients with all their real estate needs.
The top three reasons to work with our team:
- HONESTY, INTEGRITY AND TRUST. In the last 10 years, more than 80% of our business comes from referrals or repeat clients showing that we develop trustworthy relationships with our clients.
- EXPERIENCE. Having successfully closed more than 2,000 real estate transactions, we know what it takes to get the job done properly, and in a timely manner.
- WE GET MAXIMUM VALUE FOR OUR CLIENTS. While most real estate professionals say they get the best price for their clients, there is little that can prove that claim. However, based on a study of home sales from 2012 to 2019 where an independent appraisal was conducted in advance, we achieved an average of 104.5% of appraisal value on more than 350 residential property sales.
To learn more about how we help our clients get the best possible price for their property, visiting our web site at www.QuantumRealtyAdvisors.com or contact us at info@quantumcos.com.