Contact UsYou Need a Trust if You Own Real Estate… And Here’s Why
Buying a home is a significant milestone, filled with decisions about location, size, and financing. However, there’s one critical decision that often goes unnoticed: whether to own your property in the name of a trust. While it might seem like a minor detail, this decision can have substantial implications for you and your loved ones.
Why Owning Real Estate in a Trust is Important
- Protection Against Probate: When you own property in your name alone, it must go through probate after your death. Probate is a public, often lengthy, and costly court process. Holding your real estate in a trust, however, allows you to bypass this process, ensuring a smoother and more private transfer of your property to your heirs.
- Flexibility in Management and Control: Trusts offer flexibility in how your property is managed and controlled during your lifetime and after. You can set specific terms for the use and distribution of your assets, which is not possible with direct ownership.
- Planning for Incapacity: A trust can be a valuable tool in planning for potential incapacity. If you become unable to manage your affairs, a successor trustee can step in and manage the property on your behalf, without the need for a court-appointed guardian or conservator.
The Different Types of Trusts
- Revocable Living Trusts: Allow you to retain control over your assets during your lifetime and make changes to the trust as needed.
- Irrevocable Trusts: Offer certain tax advantages and asset protection benefits, but you relinquish control over the assets once they are placed in the trust.
When to Consider Setting Up a Trust
Setting up a trust should be considered at the beginning of your real estate transaction. It’s easier to purchase the property directly in the name of the trust rather than transferring it later, which might incur additional costs and complexities.
Getting Help
The decision to hold your real estate in a trust is not just about asset protection; it’s about peace of mind and planning for the future. As you embark on the exciting journey of buying property, take a moment to consider the long-term benefits of a trust. If you have questions or need guidance, consult with an estate planning attorney to explore your options and ensure that your real estate investment benefits you and your loved ones to the fullest.
