Major purchases, such as real estate, have many implications on the buyer’s finances and lifestyle. These implications continue even after the owner passes away, as real estate investments must be considered as part of the estate planning and estate administration process.
Ontario investors can make it easier for their executor and beneficiaries to manage their properties by properly considering these options when preparing their estate plan:
Many real estate investors find it optimal to put their holdings into a living trust. This would allow an owner to name themselves a trustee, but to also name a successor trustee. This successor would be the one charged with distributing assets. Although trusts are initially more time-consuming and costly to set up than wills, they can have significant benefits with regard to probate and estate administration later on.
Co-ownership is another option that many real estate investors consider. This would involve a beneficiary being on the deed of a property. The main drawback to this is that, if the individual with partial ownership of the property experiences a life-altering issue such as a divorce or bankruptcy, the property could be in jeopardy. A joint owner would also have to agree to any sale of the property.
Real estate investors have a number of assets to consider when it comes to estate planning. Trusts may help ease the estate administration process, but there are multiple options worth exploring. In any case, it is important to work with an Ontario estate planning lawyer to ensure plans are clearly documented and stored until needed.