Your primary residence is often your most valuable asset. It’s important to think carefully about who you want to inherit this asset once you pass away. Careful estate planning ensures it passes to the right person while minimizing legal hurdles.
In Texas, you have several options depending on who you want to inherit your home. Below are some important factors to consider.
Using a will to pass your home on
A last will and testament lets you name a beneficiary for your home. However, a will must go through probate, which can take months. If you want a straightforward transfer that happens quicker, a will may not be the best option.
Transfer on death deed
A transfer on death (TOD) deed allows you to name a beneficiary who will automatically inherit your home when you pass away. This method avoids probate and keeps the property in your name while you’re alive. You can also revoke the deed at any time if your plans change.
A living trust
A revocable living trust lets you transfer your home to a beneficiary while avoiding probate. The home remains in the trust, managed by a trustee until the beneficiary inherits it. A trust also offers privacy since it does not become part of public records like a will.
Each option has pros and cons, and it’s essential to assess these carefully. Your choice depends on factors like beneficiary needs, probate concerns and tax implications. Seeking legal guidance will help ensure you take the right approach for your circumstances.