Property owners should work with an estate planning attorney to prepare for the disposition of a home or investment property at the end of their life. Making real estate decisions is not easy for someone who is named an executor of your estate. Do everything you can to make that person’s job easier when the time comes.

Transfer to a Family Member

Many people designate in an estate plan that a family home is transferred to the name of a surviving spouse. This often happens when the house is paid in full. But if there is a mortgage balance on the home, the surviving spouse may be able to keep up the monthly payments until the mortgage is paid in full. In other cases, the property is bequeathed to another family member, like an adult child. There are cases where a person without a family has given the home to a caregiver. Rental properties can likewise be transferred to a surviving spouse or another person. It is best to arrange this in advance to avoid surprising the designee with a property he or she is not prepared for.

Maintain as an Income-Generating Asset

Real estate can be transferred to another person for the purpose of maintaining a rental income for your estate even when you have passed away. The income could go into a trust for loved ones or be donated to a charitable organization. An estate planning attorney can explain how this option would work if you are interested. Alternately, the property can be donated to a charity to use however they wish unless otherwise designated for a specific purpose.

Sell the Property

If there is no surviving spouse, or if the real estate property is unneeded, it can be sold by the executor of the estate. The proceeds from the sale will be deposited into the estate account and distributed with other state assets before the final accounting. Sometimes a property will be sold for less than market value to a family member or friend. Any specific plans for real estate should be clearly spelled out.

Set Up an Estate Plan

Real estate can be complex to manage, which is why an estate plan is essential. Contact an attorney who specializes in this area of law to help you plan for the disposition of property you may own at the end of your life. Inform everyone who may be involved in receiving or selling the real estate.

Start thinking about an estate plan now if you own real estate that will need to be managed when you are gone. Planning ahead will help everyone to avoid stress later and give you and your loved ones peace of mind.

Author information: Anica Oaks is a professional content and copywriter who graduated from the University of San Francisco. She loves dogs, the ocean, and anything outdoor-related. She was raised in a big family, so she’s used to putting things to a vote. Also, cartwheels are her specialty.