If you fear passing your house to your child through probate could be lengthy and complicated, you should know that you have other ways to convey your property to your son or daughter. It is possible to use a trust to change your home ownership to your offspring after your death.
In order for a trust beneficiary to acquire a home from a trust, some requirements must be fulfilled so the transfer is complete and legally valid.
Completion of trust requirements
A great benefit of using a trust is that you can designate conditions for your child to receive your residence. In addition to your child becoming a legal adult, you may also require your heir to attain a certain level of education before taking ownership. While this might delay the transfer of your home, you could help ensure that your loved one will be in a good place in life when the transfer occurs.
Consultation with the mortgage lender
If you have paid off your home, your child should not have to worry about taking on any remaining mortgage. However, if your house is still not paid off, your child will become responsible for the outstanding amount. Your bank may necessitate refinancing or other requirements for your child to assume the mortgage.
However, you could account for any remaining mortgage by having your trust pay off the loan. You may place assets in the trust that could fulfill whatever amount you have left over after you die.
Provide the proper documents
Your child will need a deed to your home to complete the transfer of ownership. Your trustee should provide a grant deed or a quitclaim deed for your son or daughter. The deed must state all proper information concerning the change in ownership, such as the fact that your child is not buying the home. Your child will then file the deed with the relevant local authority.
Like any estate planning tool, a trust is subject to the laws of Pennsylvania. You should ensure that your trust meets state requirements so your child will experience no delays in obtaining their rightful inheritance.