As you age, you know that you want to protect your assets. One of your most valuable assets is your home. Should you place your home in a trust to protect it?
There are advantages and disadvantages to putting your home in a trust. While a trust can protect your home, there are some downsides to drawing up a trust that you should know. Your attorney can help you understand more about this intricate process, but these are a few things to keep in mind.
1. A positive: A trust protects your property
A trust does protect your property, and as long as you are alive, you can use a revocable trust. This trust allows you to make changes to the terms, beneficiaries and to dissolve the trust completely if necessary. When you pass away, the trust becomes irrevocable, and the terms you set are final.
2. A negative: Trusts cost more than a simplified will
If you already have a will, you may not need a trust to protect your assets. Deciding to have a trust in addition to your will can increase the cost to you. If you decide you want to add other assets to the trust, you'll need to update the trust. Additionally, you need to remove the items you sell or no longer own. Every time you make changes, there are fees for maintaining the trust.
3. A positive: Your beneficiaries can avoid probate
Living trusts are created in a way that helps avoid probate court and the costs associated with it. Probate is a long process that establishes the validity of a will. If you have no will, you may go to probate for the court to determine where assets go, whether they're owed to creditors or the beneficiaries.
These are a few things to keep in mind as you decide if you want to have a living trust. If so, your attorney can help you create a trust and manage it appropriately.