A: Preserving your property across generations takes thoughtful planning and open communication. Your home is full of delightful, heartwarming memories. And if you decide you’d like to keep it within the family, you’ll need to teach your loved ones how to thoughtfully preserve, invest and share their inherited wealth and property.
Communicate with loved ones
Start by speaking with your closest loved ones about your family history, values and plans. Familial decision-making will also be necessary when you feel the time is right to bring up your cherished property. Some clear questions will need to be asked and answered:
First and foremost, are your heirs interested in owning and operating your family home?
Are they willing and able to cover routine expenses for the property’s upkeep?
Who will be responsible for coordinating service providers like plumbers, electricians or lawn care?
Who will pay insurances and taxes?
Who will check on the place periodically?
Once you and your family members reach a mutual understanding, speak to your advisor about different planning strategies for transferring your property’s ownership. Some options include direct transfer, incorporating your home as a limited liability company (LLC) and transferring your home through a trust. Each strategy has its pros and cons, so be sure to talk with a financial advisor and an estate planning attorney to help determine your best course of action.
Even after creating your plan, be sure to keep conversations going with your family, your advisors and the rest of your professional team. Your decisions should be properly documented, but most importantly, you’ll want to make sure your wishes are thoroughly understood.
Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional.