I want my son to inherit my $1.2 million house. Should I leave it to my second husband in my will? He promised to deliver it.

I have carefully paid all mortgage and maintenance costs to ensure there is no question that this is my separate property. After I die, my trust directs my husband to get the house. I have a net worth of $1.2 million after deducting any outstanding mortgages from my current market value, and my children receive the remaining assets, approximately $1.2 million.

My husband will also be the survivor and beneficiary and will receive a payment from my pension that will more than cover the monthly mortgage payment. So my husband will effectively be paying the mortgage with the funds I provided, even after I die. After my husband passes away, I would like to return the house to his son.

not related

He is, after all, my son’s adoptive father, but we are not related by blood. Is the house considered an inheritance? If my son sells the house, will my cost basis go up the same way it would if I had left the house to him myself? Or would a husband leaving a house to his son be like a stranger leaving a house to him?

I know I can rewrite my trust to allow my husband to use the house while he lives, and to pass the house to my son when he dies. But if you do that, your husband will live in that house until he dies. He may want to move elsewhere after retirement. What I want to avoid is him leaving home to the spouse I married after I die.

What are my husband’s options if I rewrite the trust so he can live in the house until he dies and the house passes to my son, and what happens to the house if he decides to live in another state? Can he rent out his home to provide income to pay for housing wherever he goes? I think this can be defined as trust.

Any advice on this matter would be greatly appreciated.

See also: My brother lives at my parents’ house, and we will inherit 50/50. I would like to keep it in the family for my children. How do I protect my interests?

To my beloved wife and mother,

Alas, you are trying to be too many things to too many people. Set your estate planning goals based on your priorities. You’re going to have to make some sort of compromise along the way, and from what you said in your letter, your son is your top priority from an inheritance standpoint, even though you want to make sure your husband has a roof over his head. .

You will go to great lengths to ensure that your $1.2 million home does not get mixed up with marital assets in the event of a divorce. Nevertheless, you plan to leave it to your second husband according to your will. Ultimately, you want your son to inherit your entire estate, and you want to ensure that your second husband has a financially independent life after you pass away.

To do that, you have to cut yourself some slack. Circumstances change, relationships break down, people get married, and spouses often gain their own power and influence. My husband and son may fall. You or your new partner may be going through a difficult time and need money for long-term care or medical expenses. The house can be a profitable source of income.

Trust and commitment cannot be all things to all people. Allow your husband to live in your home for the rest of his life as a life tenant and specify that he must take care of property taxes and property maintenance. But you are asking for trouble by allowing your husband to have his cake and eat it too – by allowing him to live at home and sell it.

step up based

So what if your husband kept his word and left the house to you with the hope/promise that it would be passed on to your son after his death? Stepchildren are generally not considered legal heirs under the law unless they are formally adopted or included in a beneficiary designation, trust, gift, or will. Contact a tax attorney in your state.

It’s confusing. “Heirs do not have to be biological descendants to increase the basis,” says S. Michelle Jann, director of wealth planning at Goelzer Wealth Management. “The property in question should be included as part of the deceased’s estate,” she said. Eligibility for Step Up in Basis has nothing to do with personal relationships.”

As a side note, the couple’s step-up rule has a wrinkle depending on where you live. For example, if you own a house jointly With a second husband, he would essentially get a raise, but probably only half the value of the house, Jann says. However, if he resided in a community property state he would receive full advancement to the basis.

All of this assumes you predeceased your husband. In fact, your husband is more likely to die before you. This global study spanning 200 years, published in the peer-reviewed open-access medical journal BMJ Open, found that 25 to 50 percent of men live longer than women. In fact, women tend to live five to six years longer than men, Scientific American reports.

Create a solid estate plan that doesn’t require any wiggle room.

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