If you have spent your time investing, you probably have several properties that you’d like to pass on to your loved ones when you pass away. To do that, you will need to include those properties in your estate plan.
There are a few different ways that you can pass on property. One is transferring the property to another party during your lifetime. Another is setting up a trust to pass on the property as long as your requirements are met.
The last thing you will want is for probate to determine how the assets are passed on. If you have no will or designations set up, then the state laws will apply. Your assets could end up being passed on to someone you don’t want them to go to if that happens.
Investment properties could be transferred with a revocable trust
A revocable trust is one option you have to pass on your assets. In the trust, you can assign beneficiaries to whom you’d like to pass on the properties. Then, you can also assign specific requirements, such as maintaining a job or being a certain age, to the trust. That way, your investment is protected, but your beneficiary has guidance on how to access it.
Transfer property during your lifetime to minimize risk
Another option you have is to transfer property during your lifetime. Doing this will help you minimize the risks you face, helping make sure the person you want to have inherit the property does gain access to it.
If you’re not comfortable with transferring the property to them completely at the moment, you may want to consider other options like adding them as a joint tenant. In that circumstance, each of you share half the property, and it is passed on to the party who outlives the other when one dies.
Think about your investments now to protect them in the future
It’s a good idea to start thinking about your investments now, so you can protect them and the people you care about. There are multiple ways to transfer property, and you may want to investigate others before deciding which is right for you.