You may have heard of a living trust that's created while you are still alive. It can be set up as a revocable trust, permitting you to change the terms of the trust or to dissolve it entirely should circumstances change.
Such a trust can take the title to your home and transfer the control of the property to a trustee. When you die, the trust becomes an irrevocable trust, prohibiting future changes to the terms.
There are two major advantages to putting your home in a trust:
Contrary to popular belief, trusts like these generally do not protect against the estate tax, but since there is such a high floor, relatively few estates are subject to the federal estate tax.
Regardless of your situation, such a trust should not be entered into lightly, and you should know some of these key issues before signing on the dotted line:
Trusts are excellent tools for your home and for other purposes as well. You need guidance to help you decide what is right for you and how to implement it. Give us a call to discuss whether putting a home in a trust is the right decision for you.
Newsletter articles are posted every 2 weeks.
If you would like to have our e-newsletter delivered directly to your inbox, please sign up. Your information is confidential; you can unsubscribe at any time. Subscribe.