If you own a home, you are undoubtedly holding onto considerable wealth. In fact, according to Redfin, the average home price in the Monrovia area is well over $1 million. Because of the competitive housing market, your home also is likely to increase in value in the future.
While you were able to purchase a home, the high cost of housing might put homeownership out of reach for your son or daughter. Luckily, it is possible to use your estate plan to leave your home to your child. In fact, you probably have a few different options.
Your last will and testament
Arguably, the simplest way to leave your home to your child is to write a last will and testament. If you have a will, your assets go through probate. This court-supervised process ensures your assets end up where you want them to go after your executor pays your outstanding debts.
A living trust
You might want to put your home into a living trust, which gives you the benefit of using your home during your life. If you go this route, you must name a trustee to oversee the trust. While a living trust avoids probate, you must be sure you take care of outstanding debts so as not to encumber the property.
It also might be possible to become a joint owner of your home with your child. If you decide to do so, your home might automatically pass to your son or daughter after your death.
Ultimately, because there are advantages and drawbacks to each of these options, you must be certain your fully understand which one is right for you and your son or daughter.