At some point in your life, you may start to think about what legacy you’re leaving to your children and also how you’re going to handle retirement and old age.
As property — like a house and lot — may be one of the only things you’ve been able to save up for and acquire your whole life, you may think that transferring it to your children for smaller inheritance taxes and other incentives is a good idea.
While the practice may have its own merits, Rainey Collins Lawyers noted that all the good conveyancing lawyers your area has to offer should tell you about these possible scenarios:
Your Children Become Bankrupt.
If your kids fall into debt, then the house you were protecting may come into jeopardy. It can be the first thing that creditors will pull from them and you’ll all end up without a home to return to. Make sure your kids don’t have an outstanding debt or anything that could make them lose the house you’ve entrusted to them.
Your Kids’ Spouses May Not Agree With the Arrangement You Wish.
Keep in mind that anything you transfer to your kids is one step closer to their spouses and their own children. Your property is also closer to their extended families. While you may trust your children, do you trust the people around them to treat you well after you’ve essentially given them your home?
The State Doesn’t Look Kindly on the Transfer.
Sometimes, you’re faced with a bit of bad luck as the assessor figures out that you’re transferring properties to help with care home fees. This makes the benefit of lower costs of inheritance moot since they will still include the property in the assessment — especially if they can prove your motive.
You must remember that the situation with your kids today may not be the same in the immediate and far future. You’re still essentially letting them have your house and giving them control of the property. Decide wisely.