Every individual wants to avoid the complications concerning probate by developing an efficient estate plan. But most people need clarification concerning whether to include their house in a trust. This is complex to answer, as numerous factors impact every individual’s approach to estate planning. If one has recently lost someone in the family, a Cherry Hill NJ Probate lawyers should be consulted immediately to learn about all the legal proceedings concerning asset distribution.
Advantages Of Placing A House In A Trust:
Before moving further, knowing the difference between a will and a trust is essential. A Will is considered a tool used to transfer possessions and assets after the demise of the owner of the belongings. While on the other hand, trust is a lawful arrangement that proves beneficial in protecting property, wealth, and any other types of assets for the successors. It can also be used to transfer assets before death. But can a house be included in the trust? Here are the advantages and disadvantages that one needs to consider.
Help One To Stay Away From Probate:
A trust’s main advantage is that there’s no involvement in probate. Therefore, the ownership of the property or the house can be easily transferred to the descendant without any complex procedures. Moreover, probate is not only a costly process but also hampers the privacy of the inheritance of the assets. Therefore if one is reluctant to make their property go through probate, then placing it in a trust would be the best idea.
Save Estate Taxes:
If a trust is developed properly with the best legal assistance, it will help minimize tax implications. Consultation with an experienced attorney is a must during estate planning.
Efficient Protection Of Assets:
Another advantage of including the house in a trust is that the creditors will never be able to claim it; therefore, a trust undoubtedly offers the maximum protection.
Inclusion Of Inheritance Conditions:
Sometimes, the owner prefers to include some conditions concerning how the beneficiary will receive the inheritance. If someone has been entertaining such plans in mind, then placing the house in a trust would be an appropriate decision.
While all these advantages are undoubtedly promising, a few drawbacks also need consideration. The first is that placing the house in a trust will eventually cause the other assets to go through probate. Secondly, one needs to transfer the property’s title so that it can be shown that the trust owns it. This involves the necessity of maintaining more records and the need for paperwork.