Posts Tagged “will prepared by an attorney”
In our era of identity theft, title fraud costs Canadians $300 million annually. It’s a serious problem that often impacts older adults.
What is Title Fraud?
Title fraud occurs when someone other than the lawful owner transfers the property to themselves or obtains a new mortgage to pull cash out of the house. This leaves the true owner with a mortgage registered against the property.
Scammers are attracted to higher-value properties that are already mortgage-free. These are easier for the thieves to perpetrate the fraud against. Typically the scammers will place a fraudulent mortgage against a property and disappear with the money.
No payments are ever made on the mortgage and months down the road, the mortgage company begins to attempt to collect on the delinquent mortgage and this is when the homeowner becomes aware they have been defrauded. While the homeowner is trying to prove they didn’t take out the mortgage, the mortgage company is starting to go thru the collection and foreclosure process. If you suspect that you have become a victim of mortgage fraud, contact your local police department right away.
Seniors can be popular targets for several reasons:
– Many seniors have their homes paid off, making it easier for thieves to place a mortgage on the property.
– If you are a snowbird and winter down south, having your home vacant for months makes it a target. Take precautions to ensure your home is regularly checked in your absence.
– Relatives or caregivers can take advantage of people suffering from a loss of mental capacity and forge a power of attorney to gain control of a property and then sell or mortgage the property.
With so much personal information available on the internet, it has become even easier to commit title fraud and some people have lost their homes to this crime. Do a property search at your province land registry office to ensure that the title to your home is in your name.
Protecting Yourself from Title Fraud
There are a variety of legal actions a person can take to recover from fraud, but what can be done to prevent title fraud in the first place? Everyone, especially seniors, must be vigilant.
Have a Lawyer review your real estate documents when purchasing and selling your home. Be clear about what you are signing. Legal language is confusing to anyone. Acquire title insurance when purchasing a property.
Title insurance is an insurance policy that protects your home from title fraud as well as other title problems. Buy it at the time of purchase but can be added at a later date. It is good for as long as you own the property, so it only needs to be purchased once. The cost is as low a few hundred dollars and I recommend all my clients invest in title insurance.
If you plan on living in your home for the next few years it can be worthwhile protection. There are several different title insurance companies that offer policies.
Don’t be the victim of title fraud! Your home is perhaps your largest personal asset. Don’t let anyone take it away.
Roy Thomas SRES® (Senior’s Real Estate Specialist) is a REALTOR® with Sutton Group Professional Realty. Since 1991, Roy specializes in helping retirees with their later in life real estate transactions. Call Roy at 902-497-3031 or contact Roy here
When you are retired and have less income to meet emergencies, take vacations, or handle a big-ticket repair, keep in mind that you have a ready source of cash at hand: your house. Your home is likely the largest financial asset you have. You can put your home equity to work for you.
You may have approached retirement with no plans to sell your home, especially if the mortgage is paid off. When you own free and clear your costs to live there are vastly reduced, although the taxes, repair and maintenance costs, and utilities bills go on. Your home is an asset that can be tapped to improve your quality of life. You should think carefully about how to use the value of it when doing financial planning and develop a strategy to access your home equity if you need the funds by either selling the home or borrowing against it.
When You Might Want To Sell
Does your home still work for you in your senior years? Is it where you want to be? Is it too big? Does it accommodate your physical needs? You may realize it is too big for you or not near enough to the kids. If your health is failing, you may need to consider assisted living or at least find a home that is a better fit to your needs. Selling the home will free up cash.
Thinking of relocating? If you move to less expensive home or condo, you could purchase with cash and have money left over to help fund your retirement.
Becoming a renter. This gives you the option to take all your home equity and invest it to produce a monthly income. You can also pay off any mortgage debt you may have. Plus you eliminate the ongoing expenses of property tax, repairs and maintenance.
When You Might Want to Borrow
If you aren’t ready to sell, you have alternatives that allow you access a lump sum of cash or an ongoing stream. Taking a home equity line of credit (HELOC) can offer you access to cash for emergencies. Assuming you qualify for a home equity loan, a HELOC is a good way to put on a new roof or take the trip of a lifetime.
If you need to supplement your monthly income, a reverse mortgage will pull cash from your home that does not have to paid back until you sell the house or pass away. You can choose either to receive a lump sum or monthly payments, or both. Your home equity is your money and having it in hand can relieve the stress of daily living.
Should You Access Your Home Equity?
The family home should be part of your retirement planning. Using the equity to improve your retirement years is something you have earned. There is no benefit to struggling financially while hundreds of thousands of dollars in equity sits unused in your home.
Looking to sell your home? Give me a call today.
Roy Thomas SRES® (Senior’s Real Estate Specialist) is a REALTOR® with Sutton Group Professional Realty. Since 1991, Roy specializes in helping retirees with their later in life real estate transactions. Call Roy at 902-497-3031 or contact Roy here
When you leave this world, you leave behind the footprints of your life – and a trail of possessions ranging from the mundane like your toothbrush to more costly things like your home, car, and jewelry. While your body will be laid to rest within a few days, disposing of your worldly goods takes much longer and is much more complex unless you have a will.
Why You Need A Well-Crafted Will Prepared By An Attorney
The purpose of having a will is to give you a say in how your property is distributed. Though provinces have laws that determine this if there is no valid will, your preferences still mean nothing if the will is not well crafted.
In our modern world, where everyone with Internet access thinks they can become a do-it-yourself expert, some people try to write their own wills. Though you can print off the forms or buy a kit that contains all the forms, a homemade will may not be up to the task. Property distribution is complex and you need a lawyer to prepare a document to handle many situations that arise.
As compared to the wealthy and to celebrities, you may think that your finances are so simple that you need no will. When you want to assure that your loved ones receive your possessions, you also want to make sure it all goes smoothly and without unnecessary expense. A good will is the only way to insure this.
Why You Need An Estate Lawyer To Prepare Your Will
• A lawyer has knowledge based on education and experience. He is able to interpret your wishes and translate them into the proper legal language that will insure that your wishes will be carried out. If you want your money to be unevenly distributed among your children or you want a major sum to go to your cat, your heirs may challenge your will. A will prepared by a good lawyer is more likely to prevail.
• Typically, a professional will make sure you have a Power of Attorney to handle your affairs if you become unable to do so. Without this important legal document, the state may need to become involved.
• While even lawyers (or their assistants) can make mistakes, having a will prepared by a lawyer increases the likelihood that the forms are filled out correctly. A small typo, such as using a period instead of a comma, can change an inheritance from $500,000 to $500. Not filling out a blank or putting in the wrong name can leave funds in limbo or in the wrong hands. If you forget to list some assets, provincial laws of intestacy will govern who gets them.
• A will must follow certain procedures to be valid. For example, it must be signed and witnessed properly. In some areas, those who sign a will cannot inherit anything. The intent is to prevent fraud and assure that an unscrupulous nephew does not take advantage of his mentally unbalanced aunt. Even when there is no malicious intent, a desired heir could lose out. Having a lawyer handle the matter will have disinterested parties provide the needed signatures.
• Wills prepared by professionals include all your property and cover the gaps that DIY wills often miss. For example, DIY wills may not earmark money left after distributions, expenses, administrative costs, and estate taxes are paid. They may not reflect latest tax laws or set up distribution for heirs in way that will limit their tax liability. Estate lawyers should be able to set up the will to cover all contingencies.
• Estate planning should include a will. More than that, once you have a will set up with an attorney, it is important to update it if there are any changes. If you add a new provision to a will on the back of a napkin, you can compromise the whole thing.
Wills And Real Estate Decisions
As a property owner thinking of selling your home, you should consult with your attorney about the estate implications of your plans. When you are ready to discuss your real estate options, give me a call. As a Halifax real estate expert with experience dealing with Boomers and Seniors, I can help you sell your current property and even buy a new home.
Contact me today for a copy of my Personal and Financial Record Keeping Journal, a useful tool for organizing records all in one place for your family, your attorney, and your executor.
Roy Thomas SRES® (Senior’s Real Estate Specialist) is a REALTOR® with Sutton Group Professional Realty. Since 1991, Roy specializes in helping retirees with their later in life real estate transactions. Call Roy at 902-497-3031 or contact Roy here