When creating your estate plan, there are several things you should consider during this process. Generally, most people assume they only need a will to protect their assets and beneficiaries, which is far from the truth. In reality, creating a will is critical, however, there are additional documents you should consider establishing like a trust or healthcare directive. If you’ve considered creating a trust fund, understanding what you can put in the trust is critical. One question many have regards whether or not they can put a house in a trust. Keep reading to learn more about this process and how PA trust attorneys can help you with these matters.
Is it possible to put a house in a trust?
When creating a trust fund, understanding what this entails is critical. Generally, a trust fund is a legal arrangement in which the owner of property or assets transfers legal ownership to another person. This other person is responsible for maintaining and distributing the assets in the trust as per the terms and conditions of the trust fund.
If you are interested in placing your house in a trust, understanding how to do so is critical. Generally, you’ll need to create a real estate trust and sign a deed naming the trustee, or person responsible for managing the trust, as the property owner.
What are the benefits and disadvantages of doing so?
One of the main advantages of creating a property trust to house your home is that you may be able to bypass probate upon your passing. Generally, when you pass away with assets, regardless of whether or not they are held in a will, they will go through probate. This is the process by which the courts validate your will to ensure all debts are paid. As such, by relinquishing your legal ownership of the property, it will not go through the probate process.
Similarly, when you put your home in a trust fund, you are granted additional protection from creditors. Much like the assets will not go through probate, creditors cannot access the assets held in a trust fund as they technically no longer belong to you. As such, you are granted additional protections.
One of the disadvantages of this process, however, is that depending on the kind of trust you create, you may not be able to change the terms of the document. An irrevocable trust, for example, cannot be altered once it is created, meaning any decisions you make are permanent.
Can an attorney help me?
As you can see, there are many considerations you must make when creating a trust fund to hold real estate. Unfortunately, many who try to navigate this process on their own may find that they are prone to making errors that can render their trust invalid. That’s why connecting with an attorney to explore your legal options is critical.
At Friedman Schuman Layser , our dedicated legal team will do everything possible to help you through these challenging times. Connect with our team today to speak to a member of our team and receive guidance about these matters.
