Should you put your home in a trust? This may seem like a question only pertinent to homeowners advancing in age, but estate planning is a topic all homeowners should seriously consider. Putting your home in a trust has advantages and disadvantages. Here are three advantages it offers.
The first and most important is it allows you to avoid probate by transferring the title of your home directly to a family member or significant other. Probate court can be very costly and time-consuming, and while some states have streamlined this process, many others haven’t. If you want to transfer other properties that might be out of state, you’ll be able to avoid probate in those jurisdictions as well.
Another advantage is it gives you future incapacity protection, which means if you become ill or unfit to manage your own finances, another trustee can be selected to manage your trust and protect your home.
The final advantage is it gives you the opportunity to save on estate taxes. Of course, this depends on whether the trust is designated properly and the financial plans for your estate have been constructed efficiently.
Consider these factors carefully before making a decision. If you have any more questions about any real estate topics or you’re thinking of buying or selling a home in the Palm Springs area, don’t hesitate to give us a call or send us an email. We look forward to helping you.
This Blog courtesy of Will Cook, Will Cook Group, Palm Springs, CA
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