WHY PUTTING YOUR HOME IN A TRUST IS THE SMART THING TO DO

 WHY PUTTING YOUR HOME IN A TRUST IS THE SMART THING TO DO-By Monet Binder, Esq.

www.mbinderlaw.com

  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.