Proceed with caution when considering an inter vivos transfer of your home or property to a child or loved one: the consequences can be critical.
Some people choose to transfer the title of their home to their child during their life instead of leaving it to their child in a will. The parent then continues to live in the home while their child is the legal homeowner. However, if the child/recipient of the transfer – or their spouse – has debt issues down the road, a creditor might attach and force the sale of the home to satisfy the debt, leaving the parent without a place to live. This potential makes inter vivos transfers a risky endeavor, no matter how much you trust your child.
It is important to thoroughly understand the potential issues involved in this kind of transfer before you finalize it, and the best way to do that is to speak to an experienced estate planning attorney. Contact John Leonard or Heidi Anderson for all your estate planning needs by calling (215) 567-1530.