Many people make an estate planning mistake, by giving their homes to their children to avoid probate.
One common bad way to avoid probate is to give a home to a child, while the parents are still alive. This is an especially bad idea if the parents are still living in the home.
It seems simple though.
All that needs to be done is to transfer the deed to the property and it belongs to the child. It does not have to go through probate after the parents pass away.
This is a terrible idea, however, because the home is now subject to the whims of the child and any creditors the child might have.
Should the parents and child have a falling out, then the child can evict the parents. It happens. Should the child face debts that cannot be paid, creditors could force a sale of the home.
There are better options, as The New York Times recently discussed in "Leaving a Home to Heirs While You're Still Alive."
The best thing that can be done is to schedule an appointment with an estate planning attorney. These are the experts who know about the probate process and how to avoid it, when necessary.
It might turn out that the probate process is not that bad in your state and that you have no reason to fear having your home go through it.
In those cases, a will would be a good option.
However, for some other people and in some other states, it might be desirable to avoid probate completely.
An estate planning attorney can assist you to do that by creating a trust or using other creative planning methods.
For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: New York Times (Aug. 25, 2017) "Leaving a Home to Heirs While You're Still Alive."