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Wednesday, May 17, 2017

Should You Put Your Home in a Trust?

Estate planning is something for all homeowners to consider. The same goes for the decision to put your home in a living trust.

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You may think this topic is only relevant for the elderly, but estate planning is a topic that all homeowners should seriously consider. Putting your home in a trust has advantages and disadvantages. The most important advantage to putting your home in a trust is that it allows you to avoid probate by transferring the title of your home to a designated family member. Another advantage is that it gives you future incapacity protection. If you become ill or unfit to manage your finances, another trustee can be selected to manage your trust and protect your home. Putting your home in a trust also gives you the opportunity to save on estate taxes.

The most important advantage is that it helps you avoid probate.

One of the major disadvantages of putting your home in a trust is that the process is more complex and more costly than setting up a simplified will. With a living trust, your other assets will also be subject to probate whether or not you have a will. Even modest bank investment accounts made in the trust must undergo the probate process. After you die, the trust must file tax returns and value assets, which means more expenses for your estate that might negate the cost savings of avoiding probate. Consider each of these factors carefully before making a decision. If you have any questions about living trusts or anything else related to real estate, give me a call or send me an email. We look forward to hearing from you soon.