Planning ahead for real property is important but also specific to the considerations of the person creating the estate plan. Determining the most effective and tax efficient way to transfer a piece of real property requires answering important questions, such as what you hope to happen to the future of the property, who may be responsible enough to take it over and what they intend to do with it, and possible financial considerations based on the property’s location.
If you have a residence you hope to pass on to loved ones after your death, you may be concerned about the additional expense and time for the home going into the probate process. Placing your home inside a trust is one way to remove it from going through traditional probate. You can place property inside a trust to increase the chances that the outcome that you want to happen is followed. This can be either an irrevocable or a revocable trust.
If the trust is revocable, you gain the benefit of flexibility since you can change the terms of the trust up until the point that you pass away. However, only an irrevocable trust carries benefits such as protecting the assets from creditors if you were to be sued.
The three most common reasons to place a home inside of a trust for estate planning include privacy, simplicity, and avoiding probate. If these are important to you set up a time to meet with an estate planning attorney to discuss them. Meet now with a lawyer from our New Hampshire and Maine estate planning offices to determine if a trust or other avenue is best for your future home planning.