A family home is often the most valuable and emotionally significant asset in estate planning. Ownership type plays a crucial role in determining how the property is handled upon death. Sole ownership, joint tenancy, or tenancy in common can all lead to different outcomes. Without proper planning, the home might not be distributed as your client intends.
Warning: Online Will providers sometimes nominate themselves as executors and charge a commission rate of up to 3% of the client’s estate. For a home valued at $1,500,000, this means a $45,000 bill to the beneficiaries. If your clients have signed a Will with an online provider, it’s recommended to review these arrangements to uncover any hidden costs tied to a “free” or low-cost service.
Action Items:
Review ownership type and its implications for estate planning.
Discuss co-ownership and how it affects property distribution.
Encourage clients to clearly communicate their intentions for the family home with co-owners and beneficiaries.
Explore strategies like trusts or life estates to preserve the home for future generations.
Advise clients to seek expert legal and financial guidance.
Ensure documentation such as wills, deeds, and trusts are up to date.
Consider potential tax consequences of property transfers.
Recommend periodic reviews of the estate plan to accommodate changes in circumstances or laws.
Note: Always consult with a lawyer before making any changes to ownership or estate plans to ensure compliance and protect your client’s best interests.
Inherit Australia provides advisers with a structured estate planning facilitation process to ensure that client interests and wishes are maintained as part of their estate plan.
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