Making The Decision to Pass Down Your Home in Breckenridge or Frisco

Making The Decision to Pass Down Your Home in Breckenridge or Frisco

Making the decision to sell or pass down your Breckenridge or Frisco home can be difficult, especially because of the memories you have made in this home. It’s not unusual that people want to keep a beloved home in the family for future generations. Drawing up a clear estate plan can ensure your property is distributed in a way that suits both you and your family. 

Your home may be the place where your family and friends come together and maybe you’d like to keep it that way, even after you’ve passed away. Of course, it’s a good idea to discuss all the details with your children first. You should also talk to your CPA or financial advisor and estate attorney to understand the implications and benefits of passing down or selling your home. Before you commit to either option, you need to find out if it actually makes sense for your situation. 

Does Passing Down The Home Make Sense?

Do your children actually want the home? How many children do you have? Are they all interested? Or just one? This is where it can get messy. If you have multiple children there may be challenges on who gets the home. Perhaps they all co-own the home, but only one person gets to live in it. Who will pay the bills for it? Who makes the decisions on the home? There are many things to consider here. What if one child wants to rent it out instead? What about when your children decide to sell the home? How will the profits be split in that case? 

These questions can all seem overwhelming, but it’s best to consider them now. Of course, you don’t want to cause conflict, especially in your family. So, try to figure out all the details and what they actually want. Take your time to have careful conversations with everyone who will be involved so that everyone is on the same page. 

Placing The Property In a Trust

There are also financial and legal considerations for passing down or selling your Breckenridge or Frisco home to your children. Another option you can consider is placing the property into a trust, along with money to cover its operating costs for at least ten years. This may depend on the financial situation of your children. You should also think about if you would like to transfer your property to trust now, or wait until your death and have the home part of the estate. 

Placing the property into a trust and transferring ownership can help to avoid estate taxes. Each person and situation is different and knowing which one is right for you and your family is key. Federal and state tax, estate, and gifting laws are subject to change even after you set up what is best for you. And, of course, always discuss this situation with your attorney and/or a CPA first.

Final Thoughts

I hope that you’ve found this informative. I strongly suggest talking to a financial advisor or real estate lawyer to get educated on some of these details before making a final decision on whether to sell or pass down your home in Breckenridge or Frisco. And if you would like insight on how the Breckenridge-Frisco area Real Estate Market is like right now, don’t hesitate to reach out. I can provide you with a detailed market report

My goal is to provide my clients with relevant and up-to-date information that pertains to the local area and real estate topics. 

Scott Lerner
Managing Broker
Coldwell Banker Mountain Properties
970-390-6770
scott@scottlerner.com