You want to ensure that the property you've worked so hard for all of your life passes to your children. Whether you're middle-aged and your children are minors, or you're elderly and your children are all adults, there are various methods for transferring property to your children in Kentucky as part of financial planning or estate planning. Contact a Kentucky accountant or estate planning attorney to assist in determining which method is right for you.
Deed the property to your children. There are various types of deeds that your attorney may prepare, depending on your intentions:
A warranty deed of gift conveys property to your children without your receiving payment for the transfer. The deed often states that the consideration for the transfer is "love and affection."
A deed reserving a life estate conveys the property to your children, but you retain the right to live on the property during the remainder of your lifetime. Full ownership transfers at death without the necessity of passing through a will or estate in most cases.
Convey to a minor by a deed authorized under the Uniform Transfers to Minors Act. This type of deed names a custodian to manage or hold the property for the benefit of your minor child. Once your child reaches the legal age of majority, however, the custodian is required to execute a deed to your child.
Establish a living trust and deed the property to the trustee of the trust to hold for the benefit of your children. The terms of the trust generally establish when the property actually transfers to your children as named beneficiaries. It may transfer upon your death or upon your children attaining a particular age that you specify.
Provide for the property to pass to your children at your death in your will. To effectuate the transfer, the will should be presented to the probate court by your named executor after your death. Once all debts have been paid from the estate, the claims period has passed, and the estate is ready to finalize, your executor is free to deed the property to the devisees or beneficiaries under your will. (Reference 6)