Last week’s blog post focused on estate planning for property owners, cautioning that, as Justin Flach of Ascent Private Capital Management put it, “real estate is different from most other kinds of inherited assets”…
- If properties carry mortgages, that will affect the value of the estate
- Repair and maintenance costs, along with property taxes, can turn property ownership from a blessing to a burden.”
When it comes to passing on real estate assets to the next generation, we caution estate panning clients to consider how heirs might be affected, facilitating family conferences at which parents can communicate their intentions, and at the same time clarify which, if any, of their adult children are willing or even able to shoulder the responsibilities of property ownership.
But what if we’re dealing with a recent widow or widower with little experience in handling the property management tasks that used to be the responsibility of their mate – and no children who can help?
At our Geyer Law Indiana estate planning firm, we are often called upon to help address legal needs following the recent passing of a spouse. This might include settling the estate, closing joint accounts, updating beneficiary designations and powers of attorney. Where there is real estate involved in addition to the primary residence, decisions will need to be made:
- Is it wisest to keep ownership of the property?
- Does a property manager need to be hired?
- Should the property be sold?
- How will the widow/widower’s financial support be affected by either course of action?
“Not everyone needs to hire a lawyer when their husband dies.” But, where there is significant real estate, including primary homes, vacation homes, commercial property, or timeshares, hiring an estate planning attorney is a must, Stacy Francis, CFP® observes in Kiplinger.com. .
At Geyer Law, we’ve found one of the decisions facing individuals after their spouse has died is whether to sell the home, and if so, when. While we offer no tax advice, we tell the recently bereaved client to discuss with a tax advisor claiming the full $500,000 exclusion for widowed individuals who sell their primary residence within two years.
At Geyer Law, we believe a well-crafted estate plan should provide for loved ones in an effective and efficient manner, minimizing headaches and delays. Still, it sometimes happens that property has already passed to the next generation, with the heirs coming to us for help regarding the valuation and taxation of property interests.
After a spouse passes away, there might be only a primary residence involved, or there may also be business or commercial property. In either case, widows and widowers can turn to our Indiana estate planning law firm for help.
– Cara Chittenden,Attorney with Rebecca W. Geyer & Associates
