U.S. families are increasingly opting to roll things together. In fact, data from a Pew Research Center analysis identified that 20% of the U.S. population lived in multi-generational homes. This brings about important concerns for estate planning. In some cases, this has to do with older children moving back in with their parents in order to make ends meet while carrying through their student loan payments.
Others may involve grandparents who are involved in providing childcare. No matter what your house looks like, including your loved ones in your estate planning and considering the structure of your family is important.
Many adult children are now considering how they can rework their existing housing arrangements to accommodate the needs of aging parents who require additional healthcare support.
This means that estate planning and financial planning must be calculated because good planning is crucial to the success of all of these arrangements. There are many different multi-generational tax, financial and estate planning issues that can arise. Thought must be given in particular to those questions such as who should own the real estate and if that title is taken jointly in a family partnership, trust or otherwise. Inter-family loans might also be one other option to explore.
Additionally, consider whether or not there exist sufficient assets in the parents’ estate to pay for any estate taxes while also providing for other beneficiaries.
Real estate must also be included in the consideration of the overall estate plan and whether or not the plan is fair for all of the heirs. Deciding who should be included on what assets they should receive is extremely important and can help eliminate conflicts in the future. Navigating the decision-making process means thinking about what it means to include all of your key family members and common missteps that you should always opt to avoid, if possible.
Scheduling a consultation directly with an experienced estate planning attorney is often the first step in getting your questions answered and understanding the various tactics and strategies available to you.