Episode Summary
Transferring ownership of your home to your child or children is easy, but that’s where the uneasiness often begins. When you give joint or sole ownership of your home to your child or children while you are still alive, you lose some or all control of the asset. Additionally, the home becomes vulnerable to new types of risk—some predictable, some unforeseeable. So, before you place the name(s) of your child or children on the deed to your home, Jeff Bellomo would like to teach you about trusts.
Key Takeaways
Takeaway 1: When transferring home ownership to an adult child, be sure to consider possible changes to the new owner’s circumstances – 01:00
People often think that they can fully protect their family home by giving their child or children joint or sole ownership of the asset
Transferring ownership of the home means that your asset is now their asset
Consider what could happen if the adult child gets divorced or remarried, incurs liability in a car accident, dies unexpectedly, or needs special health care for themselves or a member of their immediate family
These unforeseen circumstances, and many others, can put your assets at risk
Without control of the asset, it can be used in ways that were not intended when you transferred ownership
Takeaway 2: Bellomo & Associates workshops are designed to educate so that you understand the implications of your decisions – 13.54
The workshop team encourages attendees to think in terms of three “lands” (tax land, long-term care land, and estate planning land)
A decision in any one of these lands will have implications in one or both of the other lands
Smart decisions rely on understanding these implications
Takeaway 3: A trust can provide protection for your assets and enable you to retain control of the assets while you are alive – 18:32
The assets in a trust will pass to your trustee(s) with only a 4% inheritance tax rate for lineal descendants (your children)
If your child or children sell the property, there will be no capital gains tax
This trust strategy provides far better protection of your assets than joint ownership or fully relinquishing ownership of a property to your child or children
Links and Resources Mentioned
Bellomo & Associates workshops, including Medicaid: https://bellomoassociates.com/workshops/
For more information, call us at (717) 845-5390.
Connect with Bellomo & Associates on Social Media
Twitter: https://twitter.com/bellomoassoc
YouTube: https://www.youtube.com/user/BellomoAssociates
Facebook: https://www.facebook.com/bellomoassociates
Instagram: https://www.instagram.com/bellomoassociates/
LinkedIn: https://www.linkedin.com/in/bellomoandassociates
When someone calls Bellomo & Associates looking for information for the first time, they speak with Intake Specialist Jacob Sherman. Jacobs passion for helping others, especially during a tough time, is evident from the start. As a provider of what Jeff calls, service extraordinaire, Jacob ensures that a persons initial interaction with Bellomo is helpful and positive. Jacob applies that same level of commitment to his work as a health coach. Jacob introduced Jeff to OPTAVIA, the program of healthy habits that Jeff has used to lose 100 pounds. Both men have had life-changing success with the program. This discussion of their journeys back to health is truly inspiring.Learn more about OPTAVIA at https://www.optavia.com/ Apple: https://podcasts.apple.com/us/podcast/finding-hope-in-loss-meet-jacob-sherman/id1634278675?i=1000633436555 YouTube: https://youtu.be/gRX7g5KgJfo Spotify: https://open.spotify.com/episode/7mZUon8zLh3kQ5sV3syum6?si=Y6YL8zsbQeCpjcWUV7pPzQ
Jeff reflects on his many years as an attorney and shares the advice he would give himself as a young lawyer. As it turns out, his advice consists of universal truths: think differently; keep learning and growing; be clear, consistent, and honest in your communications; accept that people need to make their own decisions in their own time; nurture and value your relationships; and, most of all, cherish your loved ones and tell them how you feel. Apple: https://podcasts.apple.com/us/podcast/reflecting-on-universal-truths-jeffs-advice-to-his/id1634278675?i=1000632666319 YouTube: https://youtu.be/O3LeJuvnnr4 Spotify: https://open.spotify.com/episode/2C2Xh0q5o6BhtWTK7cYKtO?si=F6k6_r8dTzaXAdKvnQjsGg
Episode 64: Dont Gamble with Your Legacy: Choosing the Right Professionals for Elder Law and Estate Planning Jeff answers another set of commonly asked questions in this last part of our series. But keep your questions coming! Along with guest interviews and deep dives into special topics, we will continue to address your questions periodically. And, of course, were happy to assist you in our workshops, meetings, and all of the ways we interact. Apple: https://podcasts.apple.com/us/podcast/dont-gamble-with-your-legacy-choosing-the/id1634278675?i=1000631821067 YouTube: https://youtu.be/ftFVvtreyMw Spotify: https://open.spotify.com/episode/6mZanpnQgggg8F5Cwo4HDX?si=uQOIDttpTAmi6tyMLg4VWQ