There are several options for Georgia families thinking about what to do with the family home during estate planning. The family home, for many people, is meant to be preserved. However, dividing the asset among the beneficiaries might be more prudent. Taxes and upkeep can be burdensome for family members, creating stress and conflict, so careful consideration is a wise choice. The advantages of keeping the family home include emotional value, familiarity, and the ability to preserve family memories and good times. The family home can continue the legacy and be passed down to future generations.
Considering the family home when estate planning
The emotional side of the family home presents challenges when deciding what to do with it during the estate planning process. Family discussions get intense when some members want to keep the house while others see the financial advantage of selling it. Weighing the pros and cons of upkeep, depreciation and the overall benefits helps families reach the best conclusion for their needs.
Managing multiple properties is challenging, especially when it comes to paying property taxes, utilities and landscaping costs and getting repairs done. Once the property transfers ownership, taxes could increase, burdening the heirs. Realistically assessing the cost of keeping the family home over selling it allows for the most prudent choices.
Using the family home as an investment property
When planning for the future, home ownership looks bright. Home equity is an asset that helps with repairs, upkeep, additional investing and savings. The family home can be used as rental property like an Airbnb. However, other costs are associated with rental properties. The money people can earn from an investment property can support a family as long as it remains higher than the maintenance costs.