As you create your estate plan, you may allocate specific assets to certain beneficiaries. For example, if you have three adult children, you might leave your investment portfolio to one, your vehicles to another and the contents of your bank accounts to the third. Even if you’re aiming for an even overall split, you can achieve it by distributing different categories of assets to different individuals.
However, some assets can be challenging to divide. For instance, if you still own your family home—where your children grew up—you might want to leave the home to all three children jointly so that things are fair and to keep them all involved. Is this possible, or must you choose just one person to inherit the home?
Joint ownership options
You can leave the home to multiple beneficiaries, allowing them to become joint homeowners. This arrangement means that all beneficiaries will have equal ownership and rights to the property. If they decide to take any steps in the future—such as selling the house—they will all be entitled to an equal share of the proceeds. In this way, your estate plan can be fair and equal.
However, joint ownership can lead to complications. Since all owners must agree on major decisions, disputes can arise. For example, one person might want to sell the house while the others do not. Additionally, disagreements could occur over responsibilities such as paying property taxes, covering maintenance costs or deciding who gets to live in the home.
Addressing potential challenges
While it is possible to leave your home to multiple people, it’s wise to address these potential complications in your estate plan. Proper planning can help prevent disputes and ensure a smoother process for your beneficiaries. Be sure to understand the legal steps you need to take to create a comprehensive and effective plan.