Is it a good idea to put a house in a trust? This question is often one of the most asked questions at Battlefront Legal. There are several factors to consider as well that would influence the estate planning for every individual. If you are questioning whether you should put your house in a trust, keep reading.
What is a trust?
A trust is a legal arrangement to protect the wealth, possessions and other assets. It may be passed down to future heirs or next of kin.
Advantages of getting a trust
The benefits typically outweigh the drawbacks when you consider getting a trust. One of the major benefits of a trust is that it does not go through a probate, which means contents that can be seen by the public. This means faster transfer of the assets to the ones that are named on the trust.
If you are still on the fence of a getting a trust for your house, here are more benefits that'll ease your worries:
This is one of the main reasons people put trusts in their homes. It protects the assets, as it can't be claimed by creditors or Medicaid estate recovery programs.
If you want to add conditions to an inheritance, that's when a trust comes in handy. The conditions can say when or how when the recipients would receive the inheritance.
Save Estate Taxes
If your property has a trust in it, it can save a significant amount of taxes.
If for any reason you fall ill or are not capable of doing a will, you can assign a trustee to help manage your finances and your trust. It can be your spouse or your next of kin. This helps keep your home protected with a trust in the event of any changed circumstances.
Disadvantages of a Trust
There are more benefits than disadvantages to have a trust on your home, but there are a couple of reasons avoid a trust:
A trust means it needs records of the title of the house and more. That means more paperwork because you have to transfer the title of the house to prove that the trust owns the property.
Other Assets May Be Subjected to Probate
If you don't include everything in your trust and just your home, it'll mean a longer process, as it will have to go through the probate process. This may mean that these assets can be claimed, so you'll have to think about what assets you want to be protected in the trust.
If you require help with setting up a living trust, Battlefront Legal can help. We are available by phone 24/7 and give out free consultations. Call today at 702-832-5000.