Many assume that the assets held within a trust only go as far as money. But you must understand the very viable option to incorporate your house into a trust, as well. While many benefits come with a real estate trust, you must weigh them carefully against their possible drawbacks. Follow along to find out the advantages of placing your house in a trust and how a proficient Broward County trust lawyer at The Probate Lawyers can verse you on its serious implications.
What are the advantages of placing my house in a trust?
Before all else, there are certain steps you must follow to establish a real estate trust officially and legally. Firstly, you must appoint another entity, another individual, or yourself as a trustee. Secondly, you must create and sign a trust agreement outlining your desired terms and conditions. Then, you must sign a deed that names a trustee as the new owner of your house. Lastly, you must send the deed to the county recorder’s office, along with its required fee.
Ultimately, upon completing this process, you and your beneficiaries may reap the following benefits:
- Your beneficiaries may bypass the lengthy and costly process of probate.
- Your beneficiaries may avoid any tax burdens with their newly inherited house.
- You may keep the transfer of your house strictly confidential and off public records.
- You may protect your house from being seized and forcibly sold by creditors in the event of bankruptcy.
- You may maintain control over how and when you wish your house to be distributed to your beneficiaries.
- You may have others who can step in to maintain your house should you ever become incapacitated during your lifetime.
- You may avoid disputes amongst your family members by facilitating a smooth succession of your house to your desired beneficiary.
What serious implications come with placing my house in a trust?
Placing your house in a real estate trust may have great advantages balanced out by seriously negative implications. This is all to say you must carefully consider this estate planning strategy before fully committing to it. Without further ado, some disadvantages read as follows:
- This may carry serious implications in terms of your income tax.
- This may carry serious legal and administrative costs to establish and maintain.
- This may require you to relinquish full control over your property, starting during your lifetime.
- This may prohibit you from reversing your decision to relinquish full control over your property.
- This may not protect your other high-value assets from undergoing the lengthy and costly probate process.
In conclusion, there is no better time to act than now. So please reach out to a talented Broward County estate lawyer at your earliest possible convenience.
