Integrating Real Estate Into Your Indiana Estate Plan
Real estate often anchors an estate plan, whether it is a family home, rental property, farmland, or a family business property. Without clear direction in your estate plan, title issues, taxes, and competing expectations among heirs can quickly complicate your legal affairs.
At Parr Richey Frandsen Patterson Kruse LLP, we counsel our clients to help them decide the most effective way to address real estate in their estate plan. This can include a beneficiary designation via transfer on death deed, a revocable trust, transfer through a Will and probate estate, or business succession planning. The following are examples of common planning techniques involving real estate:
Life Estate. In some circumstances, clients may wish to leave a life estate to let their longtime partner or another special person live at their home while ensuring their children or others ultimately inherit the property. These situations involve careful planning to ensure the life estate holder can enjoy the property while protecting the property for the final beneficiaries.
Right of First Refusal. A right of first refusal can be one of the simplest ways to keep land or a business interest in the family (or at least keep control over who ends up owning it). For example, clients may want their child who farms the land to be able to purchase it from their estate before the children equally inherit the property. In other circumstances, business owners want to prevent an ownership interest from being sold to an outside buyer or stranger. These provisions must be carefully drafted to explain the timing, method, and manner by which to exercise the right of first refusal. This can prevent forced sales, reduce conflict between heirs, and protect the long-term use of the asset by putting a clear, enforceable process in place before emotions take over.
Investment and Business Property. Investment properties and farmland involve different planning than the sale of a personal residence. Key considerations include who will inherit the property, how it will be managed and by whom, and whether the heirs can successfully own the property together. Our experienced attorneys help clients evaluate their options with regard to the ownership, transfer, and continued management of income-producing properties.
Estate Administration Considerations. When administering estates, we frequently work with clients, realtors, and title companies to review title work, prepare deeds, and obtain necessary court approval for the real estate transaction.
Real estate transfers can be complicated. There are different types of property ownership, deeds, and methods to convey real estate. The “do-it-yourself” approach may lead to costly corrections years later. You can limit these risks by working with an experienced real estate attorney for your estate planning.
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Call our office at 317-269-2509 or contact us online to discuss your real estate and estate planning needs.