Full question:
We are wanting to protect a farm against lawsuits as a result against either my husband or me. We have businesses that are S-corps and would like to set things up that one child only would inherit the farm upon both or our deaths and not have to go through probate. So are we looking at an incorporation or trust or something else?
- Category: Corporations
- Date:
- State: National
Answer:
To pass property to a child without going through probate, consider these options:
1. **Create a trust**: A trust allows you to designate your child as a beneficiary. The trustee can transfer ownership without probate.
2. **Transfer with a life estate**: You can transfer the property to your child while retaining a life estate. You live in the property until death, after which it goes to your child without probate. Note that this may lower the tax basis for your child.
3. **Joint tenancy with right of survivorship**: This means that when one owner dies, the other automatically inherits their share. However, be cautious, as this could expose the property to your child's liabilities.
Each option has different tax implications. It's advisable to consult with a local attorney who can review your specific situation and documents.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.