There are a lot of misconceptions about inheritance (see our blog on estate planning myths: https://grissomlawfirm.com/estate-planning-probate-myths/. In an effort to avoid probate, or to make things easier for family members who are caring for aging parents, shortcuts are taken instead of visiting an estate planning attorney.
Adding names to your property, real or personal, is not the best way to secure planning for your family’s future. There are so many things that could go wrong during your lifetime, or that family member’s lifetime, creating an estate plan with the help of a Georgia probate attorney will assure your assets actually pass to the people you want, in the way you want them to receive it.
The Pitfalls of Joint Ownership
One of the main reasons people transfer property to their children is to save the money they would have spent on creating an estate plan. However, it is too easy for the children to lose your house – and then you would not have a place to stay. An adult child could get in trouble with the law, have an accident that incapacitates him or her, or even die. If the adult children do not have an estate plan, his or her estate must go through probate – and your adult grandchildren would most likely take possession of the property.
Creditors could also place liens on the property. If your adult child is forced into bankruptcy, you could also lose your house.
Creating an estate plan ensures that the child or other relative you choose gets your property. It also helps to protect the property of the above-mentioned actions and other legal actions against your children.
Lastly, if you place a child on the deed during your lifetime, they will not receive the step-up in cost basis and could end up with a big tax bill instead of a great inheritance.
What To Do Instead
Depending on the type of estate plan you create, you could also avoid probate and, should you become incapacitated, allow someone else to handle your finances for you until you recover. A revocable trust can be a helpful tool to assure you are cared for during your lifetime (even if you are incapacitated), avoid probate, and pass inheritance effectively. You can update your beneficiaries, or make accounts Payable on Death.
If you have property and do not have an estate plan, contact our Georgia probate lawyers at Grissom Law, LLC today to start working on your estate plan. You do not need a lot of money or property to create an estate plan. Even if you have a modest home and a small savings account, you could save your heirs money by creating an estate plan.
Disclaimer
This Blog/Web Site is made available for educational purposes only as well as to give you general information and a general understanding of the law, not to provide legal advice. By using this blog site you understand that there is no attorney-client relationship between you and Grissom Law, LLC.