After years of family memories made in your home, the thought of selling it might not seem right. Luckily, you can keep the memories alive by passing it down to your children once they become adults. However, it's not as easy as simply handing them the keys. From wills and trusts to deed transfers, use the following guide to learn more about this legal situation.

3 Ways to Pass Down Your Family Home

1. Create a Trust

If you want to bequeath the property to your children, consider establishing a revocable trust. Unlike irrevocable trusts, these documents can be changed or revoked during your lifetime. If circumstances change or you change your mind about which child to leave it to, the matter is flexible. Plus, unlike wills, trusts can bypass the probate process, which can keep beneficiaries from receiving their inheritances for weeks to months.

2. Set Up a Deed Transfer

If you currently own a home in Hawaii, you can create a Transfer-on-Death deed for the property. Once signed, this document will ensure that the property deed is immediately transferred to the individual of your choosing once you pass away. This method also allows your family home to skip the probate process.

3. Establish a Qualified Personal Residence Trust

While simply gifting your home to your children would warrant a sizable gift tax, you can reduce it by setting up a Qualified Personal Residence Trust (QPRT). It allows you, the current owner, to continue to live in the home for a period, but legally transfers the property into the trust for your children. While you live in the home, you’ll still take care of all the expenses of ownership. Once the period ends, ownership is officially transferred to your child. Plus, the value of the home is frozen once it enters the trust, resulting in fewer taxes later on.

Whether you believe a trust, deed transfer, or real estate sale would be right for you, turn to The Law Offices of Reuben S.F. Wong to help devise a promising estate plan. This Honolulu, HI, attorney has over 50 years of experience helping clients prepare for a brighter future, handling everything from business expansions to home sales. He and his team pride themselves on offering customized solutions and returning calls or emails in a single day. To learn more about their practice, visit the website. You can also call (808) 531-3526 to schedule a free consultation.