While preparing for end of life is always difficult, not to mention sensitive, there is one aspect of preparation that can be essential, not to mention wise.
Property inheritance.
Think of it in the context of this hypothetical family: the parents have lived in the family home for decades, raising several children. During that time, its value has multiplied. They pass away about the same time, and when the time comes for the property to be inherited, it’s clear that the final will has been prepared wisely.
As part of the estate planning, the parents have addressed what can sometimes be a ticklish issue: a difference of opinion about who should own the home, whether it can be sold and how to handle a difference of opinion. The solutions are likely to be different for each family. What’s important is that they are addressed in advance, ideally with solutions consistent with the wishes of the parents.
There’s also the matter of capital gains tax. The “hypothetical family” had meticulous records itemizing not just the purchase price of the home, but also the cost of all improvements and renovations done over the years, with receipts. The result could save the heirs from paying more capital gains tax than they need to pay.
An estate lawyer can be key to doing this right for everyone, and it all begins with planning ahead.