There are many reasons why parents establishing an estate plan might want their children to stay in their family home. Maybe it has passed to multiple generations of family, and it is an important part of their heritage. Perhaps the property is in a competitive school district, and the parents want their children to benefit from having access to the best education possible.
Maybe the children have special needs. The house might have modifications that make living there safe and comfortable. Preserving routine and familiarity can also be important for helping people with special needs adjust after a traumatic loss.
Whatever the motive is for wanting to keep children in their family home, parents may need to be particularly careful about their estate planning if that is one of their goals. How can parents improve the likelihood of their children remaining in their current residence if something tragic happens?
By selecting the right guardian
Technically, the day-to-day lives of the children depend on the decisions made by their surviving parent or guardian. If keeping the children in the home is a priority, then that can influence the guardian selection process.
Someone who lives in another state, has children or has a home of their own may not be able to relocate suddenly after a tragedy occurs. Instead, they might expect the children to come to them. Someone responsible who rents can be a reasonable option.
Selecting someone who does not have children of their own or whose children are older can also be helpful. Parents also typically want to discuss their wishes with guardian candidates to see who is receptive to the idea of moving into the family home should their support prove necessary.
By creating a trust
Leaving a house to children as a direct inheritance might result in its sale. Assets that pass through probate court could be subject to creditor claims that force their liquidation. Even if there aren’t financial issues that put the house at risk, the children’s guardian controls their inheritance. A guardian can choose to sell inherited resources on behalf of the children.
Therefore, using the home to fund a trust can at least preserve the property until the children become legal adults. If the trustee is not the same person as the guardian, they can manage the home and allow the children residency or access in accordance with the parents’ instructions.
People with unique goals often need help crafting viable estate plans. Identifying personal legacy wishes and the needs of dependents may make it easier for parents to plan for the worst-case scenario.