It’s a noble thing to do, to transfer property to your children. It’s a huge step and it’s one that will certainly set them up for the future. As parents, we want to do everything possible to help your children to get ahead and transferring property is a huge step to take – but it does involve legal, financial and emotional considerations.
Whether you want to pass down a house that’s been in your family for generations, or you want to offer them the chance for an investment property to build their own wealth, it’s a step that requires understanding how to do it properly. So, let’s take a look at some of the steps that you should take to give your children property:
Write a will. You can leave property to your children through the will you write but you have to remember that you need to write one! Go and see a lawyer and you will know that you have to have a will in place to make life easy after you die. You can then retain full ownership of your property during your lifetime and then make it clear for your children. Just don’t forget to fill out the property deed paperwork so that you can ensure that the transfer is property recorded. It can be a cost effective option but probate can be lengthy!
Gift the property to the kids. Did you know that you can gift property to your children? It’s a simple method of transfer and you’ll receive no payment in return. The only thing that you have to consider is the tax implications of doing so. There are gift tax exemptions to consider, and it depends on which country you’re living in as to what tax you might pay. It’s a good idea to sit with a tax advisor for this one!
Use a trust to transfer it. Creating a living trust is an easy and flexible way to transfer property to your children. This way, you can place a property into a trust during your lifetime and leave specific instructions as to how the property should be managed. Unlike a will, trusts avoid the probate process and that can make the transfer easier. A revocable trust allows you to retain some control, too, but you should work with a lawyer or an estate planner so that it’s all marked correctly.
Bring them into joint ownership. Another option is to add your children to your property as joint owners. This can be done through tenancy arrangements so that you all share ownership. That way, on your passing, you can be sure that the property is left to the surviving co-owners. This is a smoother way to leave property to your children and know that the house remains in the family.
Write a will. You can leave property to your children through the will you write but you have to remember that you need to write one! Get in touch with your lawyers so you will know that you have to have a will in place to make life easy after you die. You can then retain full ownership of your property during your lifetime and then make it clear for your children. Just don’t forget to fill out the property deed paperwork so that you can ensure that the transfer is property recorded. It can be a cost effective option but probate can be lengthy!
Giving your children property is a huge gift, so you want to make sure that you get this right from day one. If you can do this properly, your children will have the benefit of property in the future.
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