WHY PUTTING YOUR HOME IN A TRUST IS THE SMART THING TO DO-By Monet Binder, Esq.
If you are like many homeowners, your home is likely your family’s most valuable and treasured asset. You want to plan wisely to ensure your home will pass to your heirs most efficiently and safely as possible.
Proper estate planning is as much a part of responsible homeownership as having
homeowners’ insurance or maintaining your home’s roof well. When it comes to
including your home in your estate plan, while you have different planning
options to choose from for various reasons, putting your home in a Trust is
often the smartest and most beneficial choice.
What Is A Trust? In simplest terms, a Trust is an agreement between the
“Grantor” (the person who puts assets into the trust) and the “Trustee” (the
person who agrees to hold and manage those Trust assets) for the benefit of the
“Beneficiary” (the person(s) who receive what comes out of the Trust).
Types of Trusts-While numerous types of Trusts are available, when it
comes to passing your home to your heirs, the two most commonly used Trusts are
a Revocable Living Trust and an Irrevocable Trust.
Revocable Living Trust-When the Trust is a Revocable Living Trust; this
agreement is typically made between you as the Grantor and you as the Trustee
for the benefit of you as the beneficiary. The reason to agree with yourself,
to hold title to assets for yourself, for the benefit of yourself is because
you’re removing those assets from the jurisdiction of the court in the event
you lose capacity or pass away.
You’re in control while you’re alive and well, then you give the power over
Trust assets to your successor Trustee to handle without government or court
intervention. Instead of public court procedures that would be necessary
without Trust planning, with good Trust planning, you can keep it all totally
private, and easily and efficiently manage and distribute assets. This saves
your family significant time, money, and aggravation.
Irrevocable Trust-Unlike a Revocable Living Trust, an Irrevocable Trust
is (as the name implies), irrevocable. This means that the terms of the Trust
cannot be changed, and the Trust cannot be terminated once it’s been properly
signed. When you transfer assets into an Irrevocable Trust, you relinquish all
ownership of the assets, and the Trustee you have named takes total control of
the assets transferred into the name of the Trust. Because you no longer own
the assets held by the Trust, those assets are no longer considered part of
your estate, and they eventually will not be vulnerable to creditors (for
instance, Medicaid is a creditor) or lawsuits, as long as the Trust is properly
constructed.
For a trust to function properly, listing the assets you want the Trust to hold
is not enough. When you create your Trust, you must also transfer the legal
title of your home and any other assets you want to be held by the Trust from
your name into the name of the Trust. Retitling assets in this manner is known
as “funding” your Trust.
Call 718.514.7575 | 732-333-1854 today to learn which Trust is
appropriate for your family. We’ll review your assets - including your home -
and discuss your options to protect them for fut.
MONET BINDER, ESQ., has a practice in Queens, Brooklyn and Lakewood areas,
dedicated to protecting families, their legacies and values.
2 comments:
The lawyer is saying Trust, not Trrrust us.
Bottom line - so you can beat the Gov't.
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