When families fight over estate administration, large assets are often what cause their disagreements. The home of the deceased individual could become a point of contention.
The property could be at risk due to creditor claims, tax obligations or even Medicaid estate recovery efforts. People who want specific family members to inherit their homes, those concerned about taxes and those with reason to worry about collection efforts may want to keep their homes from becoming part of their estates.
Some people establish trusts, but others may want to retain direct ownership of their homes. Those homeowners may want to consider executing a deed.
Changing title records can keep the house out of probate court
Each person with an interest in the property generally has their name on the deed for the property. The county recorder’s office keeps a record of title transactions, including deeds that add people to the title or remove them from an ownership position.
Property owners can keep their homes out of probate court by signing a deed that grants protection to the spouse, child or other loved one living with them in the home. Deeds can change simple vesting in the name of two people or one person to joint tenancy with rights of survivorship.
When either of the occupants dies, their interest passes directly to the other party. Such arrangements can reduce the overall value of an estate, protect the home from collection activities and reduce the risk of conflict among beneficiaries.
Reviewing different solutions for high-value assets can be important for those who have specific legacy goals. A new deed is one of several estate planning solutions that can help people keep their primary residences out of probate court.