Having a clear view of just how much your real estate property is worth is vital during estate planning. This is especially true if you own a significant amount of real property. Note that this refers to both residential and commercial properties.
In estate planning, the division of real estate property is usually one of the loaded guns that heir end up fighting over. This is why it is of utmost importance that you clearly state on your will what you intend to happen to your real property after you die. If not, this can lead to significant legal costs for those you leave behind.
One way you can help your heirs avoid steep inheritance taxes is by slowly transferring your assets to your heirs over the years while still alive. However, there is a maximum amount you can give away to each person every year. You can also pay for your heir’s medical and educational bills and the money will go un-taxed.
So learn about your options. Find out ways how you can have peace of mind that your financial investments, including real estate investments, will be a blessing to your heirs in the end and not a headache.
Image via Rodrigo Gianesi