How to Pass a Concrete Home to Your Children

If you have built your home using sustainable concrete, then you are already on your way to leaving a lasting and useful legacy for your family. According to TexCon Ready Mix, a concrete supplier in Texas, the cost to pour concrete is quite budget-friendly, especially when you consider all the benefits such as durability, decreased maintenance costs, lower insurance bills and lower energy bills.

Plus, concrete can withstand powerful hurricanes, hail storms and even tornadoes. There isn’t a more secure feeling than being safe from the elements within your concrete home.

And, since it is so durable, this is the type of home that can serve your family well into future generations. So, instead of selling your home to strangers, pass it along to your heirs–here’s how.

Sell it to them

Think of all the happy family memories created at your home to dinners together, gatherings, pictures, life milestones and holiday celebrations. There isn’t much that can compare to a happy family home. And, it makes sense to ask your kids of their interest in the home. You do want to make sure they really want it.

Regardless of how you handle your home, it is important to do it right so that it is a gift and not a burden to your children. One way to start might be to sell it to your children for fair market value. If your kids can’t afford to buy the home, you can loan money and then charge interest and declare the interest as earned income.

You can also create a life estate that lets you live in the property until you pass away. Although, you will have to pay fair market rent. In addition, there is the option for a Qualified Personal Resident Trust (QPRT). When you think back to how you had to calculate the concrete you need for your home, and how long it has lasted, this might be an attractive option.

This irrevocable trust cannot be modified, but it lets the parents live in the home rent-free for a specified period of time. You might even consider these projects to update your home before you sell it to your kids or loan them the money to buy it.

Bequeath the home

Again, it’s important to first ask your children if any of them want to live there. Then, create a trust that describes how you want to distribute your home. Whomever lives in the home has to keep up with maintenance, insurance costs and property taxes. If only one child wants the home, and the other do not, then compensate those without the home with additional money.

Just give it to them

The best way to give your concrete home to your children is through a revocable living trust. With this type of trust, you still have time to change your mind.

It does help to check with your mortgage lender whether giving the property as a gift will induce a “due-on-sale” clause–this means you must pay your mortgage in full right away. Since there are tax implications, the most cost-effective method for giving away your home to your kids is to do so as a gift after your death.

Execute a deed transfer

Your home is where your family’s heart is. When building, you thought of all the memories you could create–which, is why you made it your priority to hire the ideal concrete contractor to create your legacy. Now, it’s time to think of how best to transfer your home to your heirs.

The fourth option on this list is through a deed transfer. You would sign a Transfer-on-Death deed. This lets you transfer your property to your children and is similar to “payable-on-death.” Plus, like a revocable trust, you can still change the designation before you pass away.

Moreover, you don’t have to deal with a probate on the home. The only caveat is it is not available in every state–so, check your state laws around this option. If it is allowed in your state, you don’t even have to be a resident to sign a Transfer-on-Death deed.

In conclusion

Your family home is your safe space in an increasingly volatile world. It is where lasting memories have been made. With a property made of long-lasting concrete, it only makes sense to pass on this legacy to your kids.

 

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