People thinking about their legacies often want to protect their most valuable assets. For many adults, their homes are the most valuable asset they own.
People moving to Delaware to enjoy their retirement or reviewing their estate plan as they enter their retirement years may need to think about what will happen to their homes after they die. Homes that pass through probate court can be subject to creditor claims or Medicaid estate recovery efforts.
There could be a substantial delay in the transfer of ownership if there is any controversy during probate proceedings. Executing a new deed now could help keep the house out of probate court later.
How people hold title can be important
Many people never consider how they hold title to their homes. They simply sign a deed with basic language and move on with their lives. However, it is possible to execute a deed that can extend certain legal rights and protections to owners and occupants.
Spouses who live in their home together and older adults living with family members who act as their caregivers may want to execute deeds to protect the people living with them. Holding title as joint tenants with rights of survivorship (JTROS) may allow people to keep their homes out of probate.
That’s because if one of the occupants dies before the other, their interest in the property automatically transfers to the surviving one. This solution works well in scenarios where continued cohabitation is the plan. There may be other solutions available as well for homeowners who do not want their property to have to go through probate when they die.
Reviewing real estate holdings and title records can help people make informed estate planning decisions. Executing and recording a new deed now can simplify the probate process later.