Many parents worry about the right time to pass on property to their children. There are many New Jersey parents who are interested in using their property and their home to provide for their children’s future. If you try to do this while you are still alive, however, there are some risks you should be aware of when you are seeking out estate planning tips.
First of all, transferring property to someone else does put you at risk of losing the entire asset. This is especially true in light of the risks associated with divorce and debt.
Second, if you try to pass on your assets quickly in order to qualify for Medicaid, this can actually work against you in getting the government assistance you need for long-term care. There are specific rules about when you can dispose of property and still qualify for Medicaid, so you need to ensure you’re in compliance with New Jersey laws and best practices for transferring property.
Finally, trying to pass on property while you are still alive can cause conflicts between siblings. Especially if the value of the property or asset is quite large, siblings may argue over who is entitled to it and who needs it more. Thankfully, there are tips you can use to get the most out of property transfer, like trusts. Since there are a wide range of trusts to choose from, you should weigh all of your options before moving forward with your estate planning. Passing on property after you pass away or using tools like trusts to help you do it can be very beneficial.