Real Estate and Estate Planning

According to the National Association of Estate Planners & Councils, the purpose of estate planning is to “…develop a strategy that will maintain the financial security of individuals through their lifetime and ensure the intended transfer of their property and assets at death, while taking into consideration the unique circumstances of the family and the potential costs of different methods”.

If one owns a home, vacation property or other real estate, you should be aware of the estate planning issues that apply due to real estate ownership.  For the average individual or family, the value of a personal residence ranges between twenty and forty-percent of their net worth, so a sizable portion of most estates are typically in the homes equity. 

As such, there is a significant relationship between ones real estate holdings and their estate plan.  One should ensure that proper planning is conducted well in advance to avoid probate as well as the possibility of triggering estate taxes.