Should I Put My House Deed in My Trust?

For many homeowners, their house is their most valuable asset. So, it’s no surprise that they want to protect it and ensure that it’s passed on to their loved ones after they’re gone.

One way to do this is by setting up a trust.A trust is a legal arrangement in which you transfer assets to a trustee who manages them for the benefit of your beneficiaries.

But should you put your house deed in your trust?

This is a common question that many people have, and the answer depends on your individual circumstances.

Keep reading to learn more about putting your house deed in trust and why this may be a beneficial option for you.

Contact The Simone Law Firm today to discuss your estate planning options.

What Is a Trust?

A trust is a legal document that designates an individual or organization to manage assets on the behalf of another person. It also allows for the protection and distribution of those assets in accordance with the creator’s wishes. The creator—known as the grantor—sets up the trust and names beneficiaries who will benefit from it upon their death.

Trusts can be used to transfer property, provide financial support to family members, or protect important documents such as wills and deeds. They offer many benefits beyond just peace of mind. They can help avoid probate court proceedings and reduce estate taxes. Furthermore, trusts are effective tools for protecting assets from creditors or lawsuits.

Benefits of Placing Your Home in a Trust

Placing your home in a trust can provide several benefits, including:

• Avoiding probate — By transferring ownership of your home to a trust, you can avoid the costly and time-consuming probate process that occurs after your death. Your beneficiaries can receive the property more quickly and with less hassle.
• Protecting your privacy — Unlike a will, which becomes a public record after your death, a trust is a private document that does not need to be filed with the court. This can help keep your personal affairs confidential.
• Managing your assets — A trust can allow you to manage your assets and ensure that they are distributed according to your wishes after your death. You can choose a trustee to manage the trust and make decisions on your behalf.
• Reducing estate taxes — Depending on your estate’s size, placing your home in a trust may help reduce estate taxes, which can ultimately benefit your beneficiaries.
• Providing for incapacity — If you become incapacitated, the trustee can manage the trust and ensure that your home is taken care of according to your wishes.

How to Set Up a Trust for Your Home

Setting up a trust for your home can be a smart way to protect your assets and ensure they are passed on to your beneficiaries in the manner you desire.

Here are the steps to follow to set up a trust for your home:

• Choose the type of trust you want to create. There are several types of trusts, and the one you choose will depend on your specific needs and goals. For a home, the most common type of trust is a revocable living trust, which allows you to retain control of the property during your lifetime and pass it on to your beneficiaries after your death.
• Hire an attorney. Creating a trust can be complicated, so it’s a good idea to hire an estate planning attorney. They can guide you through the process and ensure everything is done correctly.
• Create the trust agreement. The trust agreement is the document that sets out the terms of the trust, such as who the beneficiaries are, how the property will be managed and distributed, and who the trustee (the person responsible for managing the trust) will be.
• Transfer ownership of the property to the trust. To put your home into the trust, you will need to transfer ownership from yourself to the trust. This may involve changing the title of your home’s deed.
• Fund the trust. Once the property is in the trust, you will need to fund the trust with other assets or property. This can include cash, stocks, or other real estates.
• Manage the trust. While you are alive, you will typically serve as the trustee of your own living trust. This means you will manage the property in the trust and have the power to make changes to the trust agreement as needed.
• Plan for succession. When you die, the trustee you named in the trust agreement will take over management of the trust and ensure your property is distributed to your beneficiaries according to your wishes.

Contact The Simone Law Firm Today

Putting your house deed in your trust is a great way to ensure that your property is distributed according to your wishes.

It also provides additional protection from creditors and potential legal claims. Moreover, it can provide some tax benefits and help you avoid probate. Ultimately, it is a smart decision for those who wish to protect their assets and ensure their wishes are followed.

If you have more questions or you’d like to get started on this process, get in touch with The Simone Law Firm today. Call now to schedule a consultation.