A commonly overlooked area for most people is how to handle the transfer of property after the Owner’s death. Most people are focused on deciding what to do with their assets during their lifetime but not how to ensure how things should be handled after they pass away.
Real-world assets and Digital Assets require different planning for various reasons. But what are the procedures of ownership transfer when it comes to assets like a house? What are the possibilities of the house ownership staying in the name of the deceased person?
A house cannot stay in the name of a deceased person!
The reason behind transferring assets like a house is to ensure proper payment of property taxes and transfer of utility connections.The ownership of a residence is transferred in accordance with the Will of the deceased person or the State’s Succession Law. The chosen new owner of the house has to register a new deed with the county recorder’s office (which usually requires a certified copy of the Death Certificate and the Probate Court’s statement).
If you are looking for Estate Planning solutions and keep on wondering what options would be of help, especially for Real Estate transfers, then keep on reading the following sections.
Real Estate Transfers After Death Of The Owner
After the death of the Owner of a house, the property goes through the Probate Court. For several reasons, avoiding Probate is one of the things you would want for your Estate. It is important to know when Probate is required so you can plan accordingly.
Real Estate Transfers In The Absence Of Heirs
If the house owner dies without heirs, then Intestate Laws will be used by the Probate Court to determine the closest living relative who would then be considered a Beneficiary. In case of the absence of any living relative and a Will, the property will be taken by the state.
Real Estate Transfers After Death Of The Owner With A Will
With a Will in place, the house will be transferred to the Beneficiary as stated. The Executor of your Estate would be responsible for dividing your assets (both physical and digital) after the Will has been verified by the Probate Court. Choosing an Executor for your Estate is another complex task with many considerations to be made.
With a Will, dividing and transferring your assets among the Beneficiaries becomes simpler. You can also add Trust to your Estate Plan which can prove beneficial and even help you avoid Probate.
Transfer Of Property After Death Without Will
Without a Will in place, the Probate Court intervenes to divide the assets following the Intestate Succession laws of a particular region. The Probate Court takes on the responsibility to decide whether or not the sale of a property is required (generally depends on the debts and bills related to Court proceedings).
The house is allocated according to the regulations of the residential state’s Next of Kin if the Probate Court decides not to sell the house (property ownership will pass in order, starting from a spouse, kid, parent, or sibling).
Real Estate Transfers After Death Of One Of The Joint Owners
If one of the owners of a joint property dies then the other owner inherits the entire property without going through the process of Probate. Joint-Tenancy With Right Of Survivorship is a legal structure that is used to transfer the complete ownership of the house to the surviving owner.
When it comes to planning for your future, Estate Planning may not sound like the most exciting idea. But if you don’t make plans for when something happens to you, then you could be leaving your family and loved ones with a lot of uncertainties.
By preparing an Estate Plan, you are making sure that everything is all set without any hitches in the case of death. With an Estate Plan, there will be no confusion about how to handle your assets after death.
With the advent of new technologies (Web 3.0, DeFi, Blockchain, Cryptocurrency, and NFTs) people are submerging into the Digital realm. Everything from artworks to Real Estate is turning digital. In the near future, you might hold more Digital Assets than physical ones which is why you need to start thinking about Digital Estate Solutions!
Looking after your digital afterlife is a lot like looking after anything else in your estate. Have you ever wondered what would happen with your Digital Assets after you are no longer able to manage them? How would you like to leave the financial Digital Assets for your loved ones? Poor management of your photos, Twitter account, domain name, and other Digital Assets can cause major trouble (including stealing of your virtual identity). If you want to ensure that your digital investments do not go to waste, then a Digital Estate Plan is something you should consider!
