If you own your home, be it modest or grand, you may want to pass it on to loved ones after you die. In this case, you may want to consider putting your home in a trust.
There are several good reasons to put your home in a trust:
- You can avoid your home going through probate
- Your home will be protected in the event you become incapacitated.
- A trust affords privacy.
Probate can be a long and costly process. If your home is in a trust, you can avoid this. Also, probate is a matter of public record. If your home is in a trust, the transaction remains private.
How does a trust work?
The person who owns the home is the grantor. The grantor names the person or persons they want to inherit the property when they pass away. These are the beneficiaries. The trustee of the trust is the person who oversees and manages the property in the trust in accordance with the grantor’s (owner’s) instructions.
The owner of the home often chooses to be both grantor and trustee thereby keeping control of the property. You would also name a successor trustee to take over managing the trust after you die.
Once the trust is set up, you will need to get it notarized. You will then need to have a new deed drawn up placing your home in the trust. This will also need to be notarized and filed with the Registry of Deeds.
You will need to decide if you want the trust to be revocable (easily changed or terminated) or irrevocable (cannot be easily changed). The draw of the revocable trust is that it can be changed but it will not protect your property from creditors if you are sued. With the irrevocable trust, you avoid probate and your property isn’t vulnerable to creditors. But, you forfeit ownership of your property and the trustee takes control.
If you’re like most homeowners, your house is your most valuable asset. It’s important to have a plan in place to ensure that your loved ones inherit your home simply and directly. Contact John Tramontozzi at Tramontozzi Law Office for a free consultation (781-665-0099). John is an experienced estate planning attorney who can help you navigate an often complicated probate process.
Note: there are a number of related articles on estate planning and establishing trusts. Please access the search option as well as the links in this article to learn more about your options