- The average lifespan of Americans is 73.5 years, making it important to plan for what happens to assets after death.
- Selling properties before passing away allows beneficiaries to avoid probate, settle debts, and prevent family conflicts.
- The benefits of selling properties include enjoying life before passing away and avoiding managing assets from afar.
- Reasons not to sell include leaving something behind for beneficiaries, generating income for them, and taking advantage of tax benefits.
- Estate management plans and updating beneficiary information are essential for ensuring legacy is passed on appropriately.
Death is inevitable, and as much as we all try to avoid thinking about it, it is essential to plan for it. One aspect of planning for death is deciding what happens to your assets, especially your properties. Some people prefer to keep their properties and pass them down to their kids or beneficiaries; however, there are valid reasons why selling your properties before you pass away might be better. Here’s what you need to know about the average lifespan of people in the U.S., reasons to sell your properties before you pass away (and reasons not to), and how you can pass your legacy to the people you love.
Average Lifespan of Americans
The average lifespan of Americans is 73.5 years old, according to World Data. This means your life expectancy is significantly lower than the national average if you are at retirement age or older. With this in mind, planning and thinking about what will happen to your assets after you pass away is essential.
Reasons to Sell Your Properties
There are many reasons to sell your properties. Here are some of them:
To Avoid Probate
Probate is a legal process that involves the distribution of a deceased person’s estate. While this is necessary, it can be pretty lengthy and expensive. Sometimes, it can take months or even years to complete, inconveniencing your beneficiaries. Selling your properties before you pass away allows you to avoid the probate process, and your beneficiaries will receive the sale proceeds more quickly.
To Settle Debts
If you have significant debts, selling your properties before you pass away can be an excellent way to settle them. Debts can burden your beneficiaries, and if the properties you left them are not generating enough income, they may be forced to sell them to settle your debts. By selling your properties before you pass away, you can settle your debts and leave your beneficiaries without financial burdens.
To Avoid Family Conflicts
Inheritance can cause conflicts within families. Sometimes, beneficiaries may have different opinions on how the estate should be distributed, which can cause tensions and disagreements. By selling your properties before you pass away, you eliminate the possibility of family conflicts since no properties are left to divide. This can help to maintain family harmony and prevent disputes.
To Relocate
If you plan to relocate to a different state or country, selling your properties before you pass away may be a better option. Managing properties in another state or country can be challenging for your beneficiaries. Selling the properties will make it easier for your beneficiaries and save them the stress of managing them from afar.
To Enjoy Life
Finally, selling your properties before you pass away allows you to live a better life while you’re still alive. The proceeds from the sales can be used to fund your retirement, travel, or other projects you’ve always wanted to undertake. This way, you won’t have to worry about leaving behind valuable assets – you’ll have enjoyed them to the fullest.
Reasons to Not Sell Your Properties
However, there are also reasons why you shouldn’t sell your properties. Here are three reasons:
To Leave Something Behind for Your Beneficiaries
Leaving something behind for your beneficiaries, such as a property or business, can be a great way to show that you care and want them to have something of value. Passing on something valuable can help ensure your legacy lives on even after you’re gone.
To Generate Income for Your Beneficiaries
If your properties are generating income, keeping them might be a better option. This way, your beneficiaries will have an additional source of income to rely on, and the assets will still be in the family.
To Make Use of Tax Benefits
Finally, tax benefits may also be associated with owning specific properties to help your family save money in the long run. Selling your properties before you pass away may mean your beneficiaries miss out on these tax benefits.
How to Pass Your Legacy to the People You Love
Planning and ensuring your beneficiaries are cared for is crucial if you decide to sell your properties before you pass away. Here are some tips for passing on your legacy:
Estate Management
You need first to manage your estate. You can do this with the help of a reputable estate attorney. This attorney can help you create a will that states how your assets should be distributed after you’re gone.
Create an Inheritance Plan
It would help if you also created an inheritance plan for your beneficiaries. This plan should include what type of inheritance they will receive and at what age they will receive it. This can help to ensure that the inheritance is given on your terms and used appropriately by your beneficiaries.
Update Beneficiary Information
Finally, updating the beneficiary information on all your accounts is important. Make sure that any bank accounts, investments, insurance policies, or other assets are listed in the name of your chosen beneficiaries. This way, the assets will pass directly to them without going through probate court proceedings. Following these tips ensures your legacy is passed on to the people you love.
Death is inevitable, and planning for what will happen to your assets after you pass away is essential. Selling your properties before you pass away can be beneficial in some cases but may also have drawbacks. It’s essential to carefully weigh the pros and cons before making decisions. You should also create an estate management plan and update beneficiary information to ensure your legacy is appropriately passed on to the people you love. With the right planning and preparation, you can ensure that your assets are cared for even after you’re gone.
