New Jersey real estate laws around inheriting real estate can efficiently and effectively keep a family home or property in the family. Maintaining a family property in the family legacy is an admirable and attainable goal for many parents and grandparents. “Life Estate” transfers are a great option in many families.
In New Jersey, a person inheriting real estate by Will, by intestacy laws, or a house may be deeded shortly prior to the death of family members. Under each circumstance, the child or children often wish to keep the property in the family. In order to preserve the family home or property, there are a number of issues that must be addressed to pass the opportunity of home ownership to your descendants. These considerations should be reviewed with an estate planning or real estate attorney to ensure each category is properly and adequately addressed with the family’s objective in mind.
The following is a truncated list of the many considerations that a parent or grandparent should consider when deciding to pass on a property or home to their descendants, either by Will, intestacy or gift. To view a complete publication prepared by the Law Offices of Puff & Cockerill, LLC, including detailed sections to the following 21 considerations, please read the full article here>>>
Things to consider when inheriting real estate in NJ
1. Tax Basis for Capital Gains Tax when inheriting real estate
2. Real Estate Taxes
3. Due Diligence
4. Title Report
6. Risk of Lack of “Due Diligence”
7. Homeowners Insurance
8. Existing Mortgage
10. Being Sued as Grantee
11. College Planning
12. Gift Taxes
13. Medicaid Planning
14. Disability of Your Children or the Grantees
15. In Whose Name Should the Property be Transferred To
16. Possession (inheriting real estate)
17. Joint Ownership Among Siblings or Others Who are not Married
18. Who is Your Roommate?
19. To Obtain a Mortgage/Home Equity Loan
20. Senior Freeze Act or Real Estate of Seniors
21. Your Decision
We encourage all individuals and families who wish bestow upon their children or grandchildren their family home, before or after death, to review their estate planning documents, including their wills and Deeds, in light of foregoing considerations. If you do not have an estate plan, now is the time to schedule a consultation with an estate planning attorney to formulate and effectuate a plan.