Please forward this error screen to sharedip-1666228136. Putting your home in a trust is advantageous, but costs more than a revocable trust account. Should I Put My House Into an Irrevocable Trust?
The advantages of placing your house in a trust include avoiding probate court, saving on estate taxes and possibly protecting your home from certain creditors. Disadvantages include the cost of creating the trust and the paperwork. Take a look at the pros and cons of creating a trust before you put your house into it. Most living trusts are structured to avoid probate and its costs. While some states have streamlined their probate process, many still require cost, time and attendance at multiple hearings. Most homeowners wishing to avoid probate and transfer title to their home to their heirs quickly find avoiding probate through a trust to be a strong advantage. Should you become ill and unable to properly manage your own finances, another trustee can be selected to manage your trust to protect your home.
Living revocable trusts give you this benefit. If you have a co-trustee that is your spouse, this can further simplify and protect your home. Your spouse can remain as trustee, managing your home and any other assets you’ve transferred to the trust. While placing your home in trust generates no extra favorable tax treatment, you may save some estate taxes if your trust is designed properly. Much depends on how efficiently your financial plans for your estate have been constructed.
Since living trusts are revocable, allowing changes or, even, dissolution, at any time, the trust and the grantor enjoy no beneficial tax treatment. The complexity in designing a trust, as compared to a simplified will, can accelerate the costs to use this method of protection. Further, you must pay attention to the assets in a trust. Should you wish to shelter more than just your home, you’ll need to be diligent to transfer other assets to the trust as you acquire them and remove those you no longer own.
All of this attention can add legal costs to maintaining the trust. If you place just your home in trust, your other assets will still be subject to probate, whether or not you also have a will. Even modest bank or investment accounts named in a valid trust must go through the probate process. Also, after you die, your estate may face more expense, as the trust must file tax returns and value assets, potentially negating the cost savings of avoiding probate. CNN Money: Estate planning: Is a trust beneficial? Disadvantages of Putting a House in a Trust.