Do I Need a Trust If I Own a Home?
Do I need a Trust if I own a home?
Yes! The answer to this question is easy because there are only benefits to having a trust. Many people may think they don’t need a trust because it’s expensive. However, putting together a comprehensive estate plan is an investment in the future and a gift to the ones you will leave behind when you die. The costs of not having a trust will be much higher for your loved ones who will have to go to court and pay mandatory fees to gain control of your property. Read on to see why you need to have a trust if you’re a homeowner in California.
Avoiding probate
Homeowners especially benefit from having a living trust. In California, an estate must go through probate if a person dies with an estate valued over $166,250. A person’s real property (for example, a home) and other personal property is subject to this rule. However, creating an estate plan via a living trust protects a person’s estate from having to go through probate. If your property is worth less than $166,250, if the property is held as a joint tenancy, or as community property with a right of survivorship, it does not have to go through probate. There are other exceptions that can help you avoid a full probate but it is important to consult with an attorney to see if they would benefit you.
Simplifying inheritance for beneficiaries
Once you die, the successor trustee of your trust can immediately control your trust property. This is hugely beneficial for a home because it means your named heirs or beneficiaries (the people you want to inherit your property after you die) can immediately take control of the home, sell things, clean items out, or otherwise carry out your wishes. Keep in mind that it’s important to have discussions with your beneficiaries before you pass about what you want done with your property. Having your home in a trust will allow them to act on your wishes as quickly and as easily as possible.
How do I put my house into a trust?
After you have drafted your estate plan, you will need to record a new deed transferring the home into the name of the trust. You will then sign the new deed in front of a notary public before recording it with your county recorder’s office.
If you need help setting up an estate plan or if you have any questions about the process of putting your home into a trust, feel free to reach out to us for a free consultation.