A House Can Lead To A Big Fight In Probate (Proper Planning Is A Must)
According to Zillow, the median home price in Massachusetts is nearly $650,000. For many people, their primary residence is their most valuable asset. A house can be the foundation of your estate. At the same time, a house can lead to a contentious dispute in probate if you do not have a proper plan in place. In this article, our Boston estate planning attorney explains why houses can be such a big issue and discusses some of the best practices for families in Massachusetts.
Why Real Estate Often Becomes the Center of Probate Conflict
The reason why a house can be more complicated to deal with in probate than most other assets is relatively straightforward: You cannot easily divide it. Indeed, real property is fundamentally different from other assets. When multiple heirs inherit a single home, disagreements can quickly arise over whether to sell it, live in it, or rent it. If one heir wants to keep the property and another wants cash, the dispute can escalate a big fight.
For example, imagine a parent passes away in Boston leaving a $700,000 home to two adult children. One lives locally and wants to keep the home and move in. Further, that sibling helped care for the elderly parent in their last years. The other sibling lives out of state and wants to sell the property for their share. If the parent’s will simply states that “my children shall inherit the house equally,” without additional language or reasoning for a distribution design, the beneficiaries may lack guidelines on a possible buyout of an adult child’s share, for example, the time period to complete the purchase, number of market analysis or valuations required, impact on fair market price from an adult child’s capital improvements to the property during the decedent’s life, and hard feelings between siblings from a perceived unfair treatment given the amount of care provided to the parent.
Best Estate Planning Practices for Planning for Your House
- Encourage Open Communication
Communication is the key to dealing with your house as part of your estate. Do not assume that everyone is on the same page, especially if you have multiple adult children who you want to leave the house to. You should encourage open communication. You can decide what should happen to the house in the long-term now and that will make it easier to develop an effective estate plan.
- Clarify Your Intent in Writing
You should make your preferences, if you have any, clear. Unclear or outdated wills create confusion. It is important to specify who will receive the property, under what terms, and what should happen if a beneficiary predeceases you. Clarity reduces the risk of a probate dispute.
- Consider a Trust
Placing a home into a revocable living trust allows the property to transfer outside of probate entirely. The trust names a successor trustee who can immediately manage or distribute the property according to your written directions. It can save time, save money, and reduce conflict.
Call Our Massachusetts Estate Planning Lawyer Today
At Fisher Law LLC, our Massachusetts estate planning attorney has the knowledge and experience people and families can trust. If you have any questions about developing an estate plan for a family home, please do not hesitate to contact us for a completely confidential case evaluation. We provide estate planning representation throughout the Greater Boston area.
Source:
zillow.com/home-values/26/ma/
