Estate planning is not meant for the old who are preparing for their last days. Neither is it totally for those who have amassed a considerable amount of wealth over their long or short stay on earth, property which they would invariably have to leave someday. As a rich person whether young or old, not planning your estate or writing a will stating how you want your property to be disposed, is tantamount to giving your property over to the state to do whatever they deem appropriate. Leaving your home to a desired heir can be implemented through a proper estate plan.
You don’t need to procrastinate till when you die. This wish can be implemented even while alive. Assuming you have sweated for and acquired $200,000 to your name, and then all this has to go to the state when you accidentally die untimely because you procrastinated planning your estate. Would that be what you want? The bottom line is, as soon as you have acquired significant assets just like a house, it’s time to write a will or create a trust, as no one knows when death will knock. All possible contingencies should be planned for and properly documented in your estate plan.
A trust is an easier way to leave a home to an heir while still alive.
Most baby boomer get confused on how to handle the transfer of their home to desired heirs. Some as to whether to out rightly transfer or leave the home to heirs through a last Will. A living trust however can help transfer an asset even while the trust maker is alive.
Living trust is a written legal document through which your assets and properties are placed into a trust for your benefit, assets protections and also for transfer to designated beneficiaries of the estate. Living trust are essential when planning your estate. There are various types of trust, but majorly the irrevocable and revocable living trust, other types of trust are the special need trust or the spendthrift trust. These two however can still be placed into the irrevocable and revocable trust.
An irrevocable trust ensures that assets are permanently transferred to desired heirs. On the other hand, assets placed in a revocable trust can be reversed. If you intended to let a desired her have oe of your home, then a trust document is vital.
Why you should use a trust when leaving a home to an heir.
To avoid Probate when transferring assets to desired beneficiaries.
One of the benefits of living trust is that it avoids probate even while a valid and clearly written will still go through a court proceeding for your assets to be distributed to the beneficiaries according to your wishes. A revocable living trust doesn’t require probate because the assets has been placed into the trust before the death of the trust maker. Once the home has been transferred into the trust they will not be considered part of your estate and will not be subject to probate. With probate eliminated, transfer and implementation of the trust would take lesser time. Also, with a living trust, your wishes would be effectively carried out without contest from any party. A will on the other hand may still be contested by any party or affecting individual.
Protection for your heir and their new home.
Once you transfer this property to your heir through a trust, it would be secured. There won’t be any will contest, neither will creditor claims be accepted.
Does a Will work better when transferring an home to heir in NYC
A living trust is different from will. This distinction can be seen in the way each documents are executed and their benefits. Living trust are legal documents through which you place your assets for protection and also easy transfer of estate to appointed beneficiary called the successor trustee. A will however, is a written legal document with a plan to distribute your assets upon your death. A named executor as documented in the will oversee this process of reading and implementing the will. While the living trust can be executed anytime the trust has been funded, the will only takes effect until after your death.
Contact our Estate planning lawyer for help.
There is no more need to wait till one ages before thinking about what property to leave to whom or where. All you need is the right estate plan document. To ensure you get everything right and to be on a safer side, ensure you consult the professional services of an estate planning lawyer near you today.
