Trusts can be a beneficial alternative to a will or estate. A trust can include various property and assets including a house or other real estate. Reach out to a Hartford County probate attorney for help creating your trust.
What is a Trust?
A trust is a legal arrangement that can hold your property and assets in one entity. It allows you to transfer your assets to an account managed by yourself and/or a trustee and list beneficiaries who will receive certain assets. Trusts are beneficial in protecting and preserving your assets. When you create a trust you can customize how you want your wealth distributed, controlling your assets even in death. Trusts allow beneficiaries to minimize taxes and allow for conflict-free inheritances.
Why Should I Include My House in a Trust?
Trusts are customizable, meaning you can include or exclude almost anything you want. It is important to note that retirement accounts are not listed in a trust because they already have an established beneficiary. Items you can include in your trust can include:
- Bank accounts
- Investment accounts
- Houses
- Real estate
- Jewelry
- Furniture
- Cars
- Various personal property
- Life insurance policies
Putting a house in your trust is advantageous to the beneficiaries and ensures a smooth transfer of assets. When you put your house in a trust you are avoiding probate. Probate is a lengthy process of determining the validity of a deceased person’s will. Probate is costly and drawn out, delaying beneficiaries from taking ownership of the home.
Keeping your house in a trust can also be more private than leaving it in a will. Wills go through the probate process and can become public. A trust allows your family to keep the ordeal private.
How Can I Put My House in a Trust?
If you have decided it is in your best interest to put your house in a trust you should take the following steps.
- Hire a lawyer. A skilled attorney will help you create your trust, offer knowledgeable advice, and ensure you follow all proper procedures.
- Decide on a single or joint trust. Joint trusts are shared between two spouses and work to bring their individual property together in one agreement. You may also choose a single trust if you are not married or if you wish to keep your assets separate.
- Decide what to include in the trust. Refer to the list above and speak with your attorney to decide what you wish to include. List all of your property so you can protect your assets through the trust.
- Choose a trustee to manage the trust. The trustee will manage the trust and enact your wishes if and when you pass away, like the executor of an estate.
- Draw up the official documents with the help of your attorney. Sign them and have them notarized.
- Transfer your property and assets into the trust. Your lawyer will be able to help you with this process.
