If something were to happen to you, do you have a plan for your property? Putting your home in a trust has numerous benefits, not only for you, but for your family. Here are some reasons why you should put your home in a trust:
When someone passes away, their assets typically go through a legal process called probate, where a court oversees the distribution of their assets according to the will. This process can be time-consuming, expensive, and can tie up assets for months or even years. By placing your home in a trust, you can avoid probate altogether and ensure that your beneficiaries receive your assets quickly and efficiently.
Protection from creditors
If you’re concerned about potential creditors seizing your assets, placing your home in a trust can provide some protection. When you put your home in a trust, you transfer legal ownership of the property to the trust, which can make it more difficult for creditors to go after your assets.
Control over distribution
A trust allows you to specify how your assets should be distributed. You can set specific conditions or requirements that your beneficiaries must meet before they can receive their share of the assets, such as reaching a certain age or achieving specific milestones.
Depending on the type of trust you choose, you may be able to take advantage of tax benefits. For example, a revocable living trust can help you avoid estate taxes, while an irrevocable trust can reduce your income tax liability. If you have questions about how a trust affects your taxes, we recommend speaking with a tax professional.
Unlike a will, a trust is a private document that does not have to be filed with the court. This can help protect your privacy and keep your affairs out of the public record. For some people, this privacy adds a layer of comfort.
Overall, placing your home in a trust provides security and can save your loved ones from going through the complex probate process. If you have any questions about putting your home in a trust or if you’d like a referral to an attorney who can handle that, give us a call at 562.896.2456.