If you have decided to get a trust it often makes sense to put your big assets, such as your home, in the trust.
People who get living trusts always have questions about what kind of assets they should put in their trusts, especially whether or not to put their home in it. Recently, FOX News discussed this in “Why Should I Put My Home in a Living Trust?” To understand the answer to the question, it is important to understand the main purpose of most living trusts.
Most people who get living trusts do so to avoid having their estate go through probate after they pass away, which is necessary if someone passes away with or without a will. Probate can be costly and time-consuming, especially when there is a dearth of practical information left behind regarding where the legal documents and assets are.
With a living trust people can use their assets while they are alive and then after they pass away those assets can be distributed to the beneficiaries of the trust without going through probate.
The trustee, not a probate court, is responsible for making sure everything is handled appropriately. It can be faster and cheaper. The most valuable asset for many people is their home, so it only makes sense to include that in the trust rather than having it go through probate.
Of course there are many other reasons to get a trust, such as for estate tax purposes. There are also many different types of trusts that can be used for other purposes. If you would like to know more about trusts and whether one might be right for you, please feel free to contact Simmons & Schiavo, LLP at (781) 397 – 1700 or visit our contact us webpage.
Reference: FOX News (October 5, 2016) “Why Should I Put My Home in a Living Trust?”