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Estate planning can be a complicated process, especially when you are unsure of the best way to protect and distribute your different assets. When you are planning for your home’s future, many people consider putting important property, like their family home, into a trust. Putting your home in a trust comes with a variety of benefits, such as increased protection and the ability to skip the probate process.
There are multiple different kinds of trusts, all of which are used to protect assets until it is time for them to be distributed to the beneficiaries listed by the creator. When an individual creates a trust, they legally transfer ownership of the assets within that trust to a chosen third party, known as a trustee. The trustee is in charge of managing and protecting the trust’s assets until the creator dies or the property can be distributed. The main purpose of a trust is to protect an individual’s property and assets while making the estate administration process easier on the heirs.
If you are unsure concerning the best way to protect and pass on a family home, you should highly consider creating a trust. Putting your home in a trust is advantageous for you and your loved ones in multiple ways.
Many homeowners opt to put their property in a trust because trusts do not have to go through the extensive process of probate, while wills and other types of documents do. This also helps to keep the estate administration process more private, as probate becomes public record after it has been completed. Because trusts are private agreements and funds, they can skip probate and the process of being put into the state’s public record.
Skipping the probate process also allows the assets in your trust to avoid certain fees, like federal estate taxes, which can quickly become expensive. If you have multiple properties or extremely valuable property, it is highly recommended that you protect and pass on your homes through a trust to avoid high taxes.
If the creator of a trust becomes incapacitated, both they and their family can rest assured that assets placed in a trust are protected. Because a trust legally transfers ownership of the property within it, if the creator becomes ill or incapacitated, the trustee will still be caring for the assets regardless.
After you pass away, your loved ones take on a variety of responsibilities in addition to grieving. Because of this, many individuals creating estate plans take into consideration what can help the estate administration process move as quickly as possible. Putting your home into a trust is one of the fastest ways that property can be transferred to your beneficiaries. The property will skip probate and simply needs to have its administration and financial details taken care of by the trustee before being passed on.
There are two main categories of trusts:
A revocable trust, commonly referred to as a “living trust,” is a type of trust that becomes active while its creator is still alive. However, because the trust is revocable, the creator still has the ability to modify or end the trust at any point while they are still alive. Revocable living trusts are most commonly used in estate plans because the grantors can still change beneficiaries, assets, and other details if needed.
Irrevocable trusts, like revocable trusts, protect and distribute property, outline the personal wishes of the grantor, and list the beneficiaries assigned. However, an irrevocable trust cannot be modified once it has become active. This means that once the creator puts their assets in an irrevocable trust and signs them over to the trustee, they no longer have ownership of them. They are also unable to change any of the terms that have been implemented.
A: While putting your home in a trust can come with many benefits, some people see the price of creating and maintaining a trust for an extended period of time as being too expensive. If you place your home in an irrevocable trust, you will no longer have ownership of the property. You will also not have any control over it.
A: Most people who choose to put their home in a trust use living trusts. This is because the grantor can still change beneficiaries or the terms of the fund while they are still living, whereas they cannot if the trust is irrevocable. If you place it in an irrevocable trust, you lose all claim to the property.
A: While creating a trust can protect some of your assets, it is important to create an estate plan so that all of your personal wishes are detailed for the future. You should consider adding a will, a personal letter of intent, and a power of attorney to your estate plan along with your trust.
A: It is highly recommended to work with an experienced estate planning attorney when creating a trust in Nevada. They can help ensure that you meet all legal requirements while outlining your personal wishes and protecting your property properly. An attorney can also act as your trustee, ensuring that your wishes are properly carried out.
Whether you wish to put your family home into a living trust or you want to learn more about what a trust may be able to do for you, our team at Ken R. Ashworth & Associates can help you. With decades of experience practicing estate law, we are prepared to help you create a trust or estate plan that makes you feel comfortable for your future. To learn more about our firm and the different legal services we provide for our clients, contact us today.