One of the main reasons people put their house in a trust is because assets in a trust do not go through probate after you die, while everything you bequeath through your will does go through probate. Using a trust to pass on your house can also transfer ownership faster than probate would have.
Why put a home in a living trust?
The main reason individuals put their home in a living trust is to avoid the costly and lengthy probate process at death. Leaving real estate assets to a spouse or children in a will causes those assets to pass through probate. This becomes especially important if you own real estate in multiple states.
Can I put my house in a living trust?
A living trust, also know as a revocable trust, allows you to control your assets, even after death. You can place any assets you want to protect in the trust, including real property. To put your home in the trust, only two simple forms are required in California.
What happens to a house in a living trust?
However, if a grantor places an asset in a living trust, it’s not considered part of the person’s estate and therefore does not have to go through the probate process. Instead, the grantor can specify in the trust deed that the trustee is to transfer title of the house to the designated beneficiary when he dies.
How does a living trust avoid nursing home costs?
While assets inside revocable living trusts do not avoid nursing home expenses, they are popular estate planning tools for other reasons. When properly structured and funded, assets inside a revocable living trust avoid the expense and hassle of probate court administration when you die.
How can I set up a living trust?
In order to make your living trust effective, you need to make sure that the ownership of your house is legally transferred to you as the trustee. Since your house has a title, you need to change the title to show that the property is now owned by the trust.
Who are the beneficiaries of a living trust?
A living trust is a legal document that places your assets into a trust for your benefit (you’re the trustee) while you’re alive and then transfers those assets, via your “successor trustee,” to beneficiaries after you die or become disabled. Think of it as a bucket filled with your money, property, and other assets.
