Purchasing a home can be costly but worthwhile since you acquire a valuable asset for your family. However, you need to protect your home even after your death. In this regard, consider putting your house under a trust. A trust is a legal document that assigns a trustee to manage your assets, including your home, on behalf of your beneficiaries. A trust can be revocable, allowing you to change the terms at any time. However, revocable trusts consider your assets to be part of your estate. Trusts can also be irrevocable and don't allow you to change the terms, but your assets don't count as part of your estate. Now that you understand the fundamentals of property trusts, should you put your real estate in a trust? Yes, and here's why.
If you have a will, its enactment begins after your death. This means that your will must undergo the probate process where your estate administrator distributes your assets following the instructions in the will. However, probate can be a lengthy process, and your beneficiaries may not get the rights to your home until the end of the probate process. For instance, delays may occur when a party contests your will and files a lawsuit. Your case may take several months or longer. Fortunately, trusts don't pass through the probate process, and nobody can contest a trust. Therefore, your trust beneficiaries can get rights to your home faster.
While preparing a trust may be more costly and complicated than a will, these initial costs are worthwhile. Ideally, the probate process may be costly as you may need to pay your estate administrator and probate lawyer. Also, the process entails processes like valuing your assets and updating taxes, which can be labor-intensive. You also need to pay for court fees. Since trusts don't go through probate, you avoid unnecessary probate-related expenses. Thus, your beneficiaries can earn more benefits.
While you may want all your beneficiaries to enjoy your hard-earned assets, not all your trust beneficiaries may be responsible. Therefore, if you're unable to manage your trust or if you die, you risk losing your home. A trust appoints a responsible trustee such as a financial institution or family member to manage your home responsibly. You can also tailor your trust to include creditor protection. For example, if you have a debt, your trust may protect your home during debt recovery after your death. Hence, putting your real estate in a trust can protect your home.
You should include your real estate in a trust to protect your asset, avoid probate and save money. Consider putting your home in a real estate trust for these reasons. To do this or learn more about your options, contact a real estate agency such as Maher Probate Realty.